Legal Question in Employment Law in California
My job overpaid me during 2 past pay periods and are now asking to withdrawal this overpayment from my future paychecks. They have provided forms for me to sign. If this mistake was on their part, am I legally responsible for signing this document?
3 Answers from Attorneys
The employer cannot deduct the overpayment from your paycheck without your permission. But you still must pay the overpayment back. This is money you did not earn. It was a mistake. If you went to a bank to cash a check and they made a mistake and gave you too much money, do you think you have the right to keep it? Same thing here. The overpayment is not yours to keep.
I agree with Mr. Kirschbaum's response. Although you are never required to sign anything, your employer can fire you at any time for any lawful reason, assuming that you, like most people, are an at-will employee. They may feel that you are greedy or dishonest if you won't allow them to deduct the overpayment from a future check or checks. If you refuse to sign to allow the withdrawal and do not voluntarily pay them the overpayment, they can sue you for the amount overpaid. If you want to keep your job, I suggest that you either sign for allowance of the withdrawal or take cash to your employer to repay the overpayment that you did not earn.
It is not your money. You must pay it back. Work out something reasonable.