Legal Question in Business Law in California

Re: Wages

The key fact, which you have not included, in favor of including some irrelevant ones, is whether you actually were overpayed. If so, you probably will have to return the money; if not, then of course not.

Re: Wages

If you employer truly over paid you, then it is legal for them to demand reimbursement. But that is the most important question. Did they really pay you more than you were entitled too? What proof do they have? Did they explain why they believer you owe them money?

Re: Wages

The rule on accidental (mistaken)overpayments is that the overpaid person must refund the overpayment upon request of the payor unless two things are both true: (1) The person receiving the overpayment was genuinely and reasonably unaware, at the time of the overpayment, that it was an overpayment; and (2) the person receiving the overpayment has "materially changed" his or her financial position as a result of getting the overpayment.

Note that it is somewhat hard to satisfy both conditions of the rule, because if the amount is sufficient that you materially change your position by, for example, paying off your mortgage ten years early, it is likely you don't meet the reasonable unawareness prong of the test. On the other hand, if the amount is so small that it escapes the attention of a reasonably-alert (and honest) recipient, spending it probably won't "materially alter" your overall financial picture sufficiently that you should be excused from the duty to repay.