401k overpayment made in error

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401k overpayment made in error

The company my husband worked for made an error in the
accounting dept. and overpaid several employees 401k
accounts at roll over time. Now 2 years later they are asking
for the amount in error. Don’t most companies have
insurance policies in cases where employees make errors?

Asked on March 10, 2018 under Employment Labor Law, California

Answers:

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

Answered 3 years ago | Contributor

When a payment is made in error, then the person to whom it was given must return it. To do otherwise would constitute "unjust enrichment", something that the courts disfavors. And when you think about it, it makes sense. If you had received less money then you should have, you would be entitled to collect the difference.


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