Overpaid after leaving company
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Overpaid after leaving company
My last day on the job of my former
employer was august 9h 2017. On
september 8th i received a direct
deposit for 8 hours labor day holiday.
What are my legal options here? Do i
have to pay the money back? Can ex
employer take it back? Wgat about my
taxes.
Asked on September 24, 2017 under Employment Labor Law, Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You will have to refund this overpayment. If you keep money that you did not earn, in the eyes of the law, this would constitute what is called "unjust enrichment". Courts disfavor this, so if you don't agree to repay this mistaken overpayment, your ex-employer can sue you. And think about it, had your former employer underpaid you on your final paycheck, etc., then you would have the legal right to collect the shortage. Further, as a practical matter, you will never be able to use them as a reference regarding any future employment.
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You will have to refund this overpayment. If you keep money that you did not earn, in the eyes of the law, this would constitute what is called "unjust enrichment". Courts disfavor this, so if you don't agree to repay this mistaken overpayment, your ex-employer can sue you. And think about it, had your former employer underpaid you on your final paycheck, etc., then you would have the legal right to collect the shortage. Further, as a practical matter, you will never be able to use them as a reference regarding any future employment.
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