If my former employer is still paying me 2 months after I quit and I needed the money so I spent it, what can the company do when it realizes its mistake?

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If my former employer is still paying me 2 months after I quit and I needed the money so I spent it, what can the company do when it realizes its mistake?

Asked on August 5, 2012 under Bankruptcy Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

1) The company can sue you to recover the money--since you were not employed and had no entitlement or right to it, there is no defense to having to repay it.

2) Under the circumstances--you knowingly taking money to which you were not entitled--the company can most likely recover its legal fees and court costs from you, too, if it has to sue.


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