8/13 If an employer overpays one of its employees by mistake, what option
does the employer have, legally and not so legally? --ricky
\_ For direct deposit, most employers will simply ask the bank to
deduct the extra amount or they will just nullify the transaction.
If the employee has already spend the money or doesn't have direct
deposit, most employers will simply work out an arrangement with
the employee to give out smaller paychecks until the extra amount
is "worked off". In cases where the employee leaves the company
before the amount is refunded, the employer can hold up options
transactions and/or sue in court.
\_ Can you please give believable circumstances where the employee
has rights to the money? That's what we pay you for.
\_ What if they paid out too much for the bonus of some sort and
didn't realize it for 30 days, 60 days, 6 months, etc. Isn't
there some kind of time limit for them to correct it under the
law?
\_ There is a limited amount of time for the employer to "recall"
the payment. After that period the money is yours. If you are
still working for the company and want to continue working for
them its probably in your best interest to give the money back
(or at least a significant percentage of it). If you have left
the company, they may still ask for it back provided the amount
is large enough. You don't have to give it back, but it is in
your best interest to work something out, because if they sue
you, it will probably bankrupt you to defend yourself.
\_ http://www.goodthink.com/$$tablecontents.html
Story of cashing a junk mail check with references to statutes of
limitations. -linc
\_ My god, this is hilarious. Thanks for the link! |
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