Legal Question in Business Law in California

Re: Overpayment of Salary

Only if you want to avoid being fired, sued and/or criminally charged with theft.

Re: Overpayment of Salary

Yes. If the pay was geniunely in error, you must give it back.

Re: Overpayment of Salary

Yes. If you don't, your employer can sue you and perhaps terminate you.

Re: Overpayment of Salary

Yes.

Re: Overpayment of Salary

The rule on refunding accidental overpayments on contracts (such as overpayment on an employment contract) is that the person who received the accidental overpayment must pay back the excess unless two conditions exist: (1) The overpaid person must have been genuinely unaware that he was getting too much. If he knew or should in the exercise of reason have known that the payment was excessive or even suspiciously high, the condition is not met; and (2) the overpaid person must have materially and detrimentally altered his position in reliance upon his belief that he was entitled to all of the payment.

Altering your position in reliance might mean taking early retirement because you genuinely thought you had $1 million in your IRA, when due to the employer's mistakes over the years you really only had $400k. It does not mean that you bet $3,000 at the track and lost.

These are tough conditions to meet, and in a paycheck kind of situation especially difficult because judges are inclined to assume that employees pay close attention to their paychecks. If you had been shorted $3,000, you'd sure as heck have noticed!