Am I legally responsible to repay an overpayment by my former employer?
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Am I legally responsible to repay an overpayment by my former employer?
My former employer I voluntarily resigned sent me a letter that they overpaid me
by over $900 and I need to repay it within 7 days or they will turn me over to a
collection agency. When I called to find out how it happened and exactly what was
overpaid, no one was available to answer my question and they said they would
have to call me back, which they have not done yet.
Asked on August 4, 2016 under Employment Labor Law, North Carolina
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Legally, an employee is responsible to repay for accidental overpayment made by their employer. The fact is that if a worker does not earn the money received, the law will not allow them to enjoy what is known as an "unjust enrichment". Frankly, when you think about it this makes sense. For example, if you were accidentally underpaid, your employer would be liable to make up any shortfall in your wages.
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