What to do regarding an overpayment by my employer?

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What to do regarding an overpayment by my employer?

My employer accidentally duplicated my paycheck back 4 months ago. I have brought up the subject at least 4 times and have been told to just leave it and not to spend it, that they will draw it back. Is there a time limit for how long they can wait to do so? While I appreciate the interest I’ve made off of it but it keeps messing up my calculations and bookkeeping.

Asked on August 7, 2011 Nebraska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

1) They do have an absolute right to get the money back, since it was an error; a mistake does not give someone a right to money in almost all cases. You are doing the right thing to seek to return it.

2) Technically, they could try to recover the money from you for up to 4 years, it would appear (treating the employer-employee relationship as one involving an unwritten contract or agreement).

3) You don't necessarily have to wait until they act, if you don't want to. You could give your employer a check or money order for the amount, and either give it in person and have them also sign a receipt or acknowledgment, or you could fed ex it or certify mail (return receipt requested) it, with a letter indicating that it's return of the overpayment.

4) Alternately, you could open a different account, deposit it there, and let it sit until they want the money back--that way, you'll segregate it for bookkeeping purposes (make sure you keep enough in the main acocunt to cover if they do draw the money back).


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