Overpayment After Resignation

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Overpayment After Resignation

After officially ending employment with my company, my employer overpaid me one
pay cycle. Now, more than two months later, they have written me requesting
reimbursement within a month. What are the legal ramifications if I am unable to
pay under these terms or at all?

Asked on June 10, 2019 under Employment Labor Law, Georgia

Answers:

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

Answered 1 year ago | Contributor

Your former employer can sue you for the money. The fact is that you owe it. With respect to overpayments, an employee needs to repay an employer for any monies accidentally paid to them. Otherwise, the worker would be "unjustly enriched". And this makes sense when you think about it. If you had been mistakenly underpaid, you would have the right to collect the shortage.

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

Answered 1 year ago | Contributor

Your former employer can sue you for the money. The fact is that you owe it. With respect to overpayments, an employee needs to repay an employer for any monies accidentally paid to them. Otherwise, the worker would be "unjustly enriched". And this makes sense when you think about it. If you had been mistakenly underpaid, you would have the right to collect the shortage. 


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