If I was been overpaid by an employer but am now no longer an employee, what should I do?

UPDATED: Oct 1, 2022

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If I was been overpaid by an employer but am now no longer an employee, what should I do?

They did not gave me much time to pay; I received the letter from a courier on 03/16 and have to repay it on o3/18. The employer who made mistakes about the salary overpayment and did not gave me any considerations on how will I repay it/Also, they did not notify me earlier notice regarding the situation. I do not have that big amount of money and so cannot repay it immediately.

Asked on March 17, 2019 under Employment Labor Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If they are right and you were overpaid, then you must repay it: the law is clear that receiving money by mistake or accident does not let you keep it. And since you have no right to the money, they do not have to give you any consideration as to how or when you will repay it--they can demand it immediately, since you have no right to hold onto it for even a day longer. (Also, the law assumes that if you received more money than you should have, that you should still have the money: i.e. that you would have saved some or all the improper surplus, rather than spending it all.) If you were overpaid, your best bet is to try to negotiate a payment plan with them; make them not quite your best offer, but a good offer, repaying it as quickly as you can, with some room left for you to go up in your offer if they push back.

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