What is the law regarding an overpayment by a former employer?
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What is the law regarding an overpayment by a former employer?
My husband worked for the state Department of Transportation and quit a year ago.
Yesterday, we recieved a letter stating that the last month he was there they
overpaid him and now we owe them $850 and if we don’t pay it they will suspend
his license. They stated that he go paid for vacation that he didn’t have, however
his supervisor told him the opposite.
Asked on December 13, 2016 under Employment Labor Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
If your husband was overpaid--which seems to be a factual issue, and something you are not convinced of; therefore, you need to determine whether or not he was overpaid--then he has to return the money. The law is very clear that being mistakenly paid something or some amount to which you are not entitled does NOT give you the right to the money. Rather, the employer who overpaid you has the right to get the money back. So if you agree you were overpaid, you have to return it; even if you disagree, or at least are unsure, you may decide to return the money to avoid the consequences of not, including legal action being taken against you.
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