Legal Question in Employment Law in California
California Employer Requesting repayment
My wife works for a large chain department store. She was told be a supervisor that she will now receive a lump sum payment in her pay checks, as she can no longer make more money with company. After a year of this, the company says it is a mistake and wants repayment 0f 8000.00. Is this legal?
1 Answer from Attorneys
Re: California Employer Requesting repayment
If it truly was a mistake and your wife was paid more than she was supposed to receive, yes, they can request that she pay them back because she didn't earn it.
But if they made an agreement with her that her earnings would be at the higher rate she was paid, then she does not have to pay it back.
She should ask to review her personnel file to see what documents are in it, indicating the rate of pay reflected by the company. She should also examine her pay stubs. If the employer over reported her earnings to the government on her W-2, that needs to be amended too.
If she does owe the money, she should work out an agreement to pay the money back in installments she can afford.
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