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What are my obligations to pay back an overpayment?
Asked on March 7, 2016 under Employment Labor Law, Alaska
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You cannot benefit from a mistake like this. You are legally required to repay your employer for a such an overpayment. However, they canotn just deduct the amount owed from your paycheck, unless you have given some sort of prior written consent for them to do so e.g. (such as in a signed employee handbook when you started work, etc.). That having been said, if you don't pay it back you could lode your job and be sued in court. What you need to do now is to try once again to work out an acceptable repayment arrangement. If you approach your employer in good faith, you should be able to work something out.
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