If my employer states they have over paid me during my tenure on short term disability, am I liable for the $4,000 or can I fight it?

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If my employer states they have over paid me during my tenure on short term disability, am I liable for the $4,000 or can I fight it?

Now I will be enduring economic hardship due to their incompetence. It was an error made at my local plant by the payroll dept.

Asked on January 22, 2016 under Employment Labor Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you were overpaid, you must repay it--the law is very clear that someone's accounting or adminstrative error does not let you keep money to which you are not otherwise entitled, so if you don't repay it, they can sue you for the money--and will win. Your best bet is to work out a payment plan with them. Note that they *can't* withhold your paycheck without your consent or agreement--that would illegal. If you don't voluntarily pay, their option is to sue you...and, of course, if you don't have a written employment contract protecting your employment, they could fire you.
You are not suffering due to their incompetence, by the way: if you repay the money you should not have gotten, you will be in the exact same place as if you were paid the correct amount initially. You are not losing any of your own money.


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