Can an employer require repayment of an overpayment made while on Short Term Disability leave?

UPDATED: Aug 21, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Aug 21, 2019Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can an employer require repayment of an overpayment made while on Short Term Disability leave?

I was approved for a short term disability leave through my employer for 2 months but ended up being out for 3. The last month I awaited a decision on my

Asked on August 21, 2019 under Employment Labor Law, Arizona


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If you were overpaid for any reason, the employer can seek the money back: the law is very clear that a mistake does not let you keep money to which you are not otherwise entitled.
They can't actually withhold your paycheck without your consent or agreement--the law is also clear about that. The proper way to recover money from you is to sue you for the overpayment. 
You could potentially sue your employer for you paycheck, if they illegal withhold it. They will then sue or countersue you for the money you owe them. It may be best to allow them retain the money and apply against the overpayment, to avoid excessive and unnecessary litigation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption