If I was paid vacation time that was deposited in my bank account, however I was as also paid 4 weeks extra by mistake, do I need to refund the money?

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If I was paid vacation time that was deposited in my bank account, however I was as also paid 4 weeks extra by mistake, do I need to refund the money?

I was let go due to downsizing after 42 years.

Asked on November 18, 2016 under Employment Labor Law, Iowa

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If paid additional monies in error, an employee can be made to pay back an overpayment. The fact is that they did not earn the money. To be allowed to keep it would constitute an "unjust enrichment", which the law will not allow. And when you think about it, having to pay back your company makes sense; if you were accidentally underpaid you would have a legal right to collect the shortage from your employer.


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