Legal Question in Credit and Debt Law in California

employer overpayment

I worked for Starbucks for 5 years as a store manager. In october I requested to be demoted and moved locations. I discovered in January that my pay change was never completed and I had been overpaid for about 3 months. I brought it to the attention of supervisors. About the same time I requested a transfer of locations, they refused to transfer me because of the ''overpayment situation'' and instead terminated me. They now sent me a letter and said that I owe them $5,000. I am aware of the fact that yes, they overpaid me, so I probably do owe them the money. But, how does the fact that they terminated me because of their own mistake, which I brought to there attention, affect the fact that they are now trying to go after me for the money? I was willing to have them deduct the amount they said I owed from my paychecks, but then they terminated me! I am not sure what to do in this situation. Do I sign the payment agreement and pay them somehow? Does the fact that they terminated me because of the pay issue have any weight? Please advise on what I should do. Thank you.


Asked on 4/01/08, 11:08 pm

1 Answer from Attorneys
David Justin Lynch David Justin Lynch & Associates, APLC

Re: employer overpayment

It would depend on what your employment agreement with the company was. Generally speaking, however, an employer can't recover wages already paid. I would not sign the agreement and make them litigate. Then maybe they'll settle for 10 cents on the dollar once they've paid their attorneys enough money. It is ultimately going to cost them more to get the money from you than $5,000 so I would just offer 10 cents on the dollar and if they don't take it tell them to shove it. The only downside I can see is that you REQUESTED a demotion. That might make a judge or jury think something's wrong with you because most people want to be PROMOTED.

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Answered on 4/02/08, 5:40 pm


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