Quiting a job and then being asked to repay paycheck money

UPDATED: Sep 30, 2022

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Quiting a job and then being asked to repay paycheck money

I use to for a work for a large bank. I went on FMLA and after returning back to my job for 1 week, I quit. I was not fired. Shortly, after that, I received a letter from ex-employer asking for monies $1000 that they claim I was overpaid, while I was on FMLA. They would like me to repay them within 6 months. I assumed when they were paying me while I was off, they knew what they were doing. Am I am legally liable to repay them? Do I have any options?

Asked on October 3, 2016 under Employment Labor Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

If you were paid while out on a medical leave then quit pretty much the moment you returned, then yes, they may be able to get the money back from you: you in essence committed fraud against them by representing, either explicitly or at least implicitly, that you were returning to work, and on that basis, they paid you--but then you did not return to work. If you had simply quit earlier, they would not have paid you; but if you were out for an extended leave then returned only briefly before quitting, it is clear you intended to quit earlier (which would have saved them the money) but essentially lied about your intentions. While it is not a guaranty that they would win if they sued you, there is a reasonable chance that they could. You can refuse to pay and take your chances; maybe they won't sue; or if they do, maybe they will lose. You could repay them, or offer to pay over time (payment plan). Or you could try to settle the case by offering to pay them some of the money (e.g. $500-$700) in full satisfaction of the claim. (If they do agree to take partial payment as payment in full, make sure to get their agreement in writing.)

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