Overpayment of wages

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Overpayment of wages

I was recently employed by a major retailer and was overpaid my regular wages due to some confusion on the employer’s part of my last effective day with the company. I immediately contacted the employer about the overpayment and was told they would look into it. Over the next several weeks we went back and forth about my last day with no resolution. I was then issued another check which was

recalled by the employer. Within the last 2 weeks I was contacted by a debt collector about the

Asked on March 17, 2017 under Employment Labor Law, Colorado

Answers:

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

Answered 4 years ago | Contributor

You need to work out a repayment plan with your former employer. The fact is that the law disfavors "unjust entrichment" which is what being paid money that was no earned is. ABottom line, a mistaken payment must be refunded. And think about it, had you been mistakenly underpaid, you would legally be entitled to the shortage. 

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You have to return an overpayment: the law is very clear that an error (such as accidentally overpaying an employee) does NOT the recipient any right to keep the money. You would be well advised to try to work out a repayment plan with your former employer that you can afford; if you don't, they could sue you for the money and would win.


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