Legal Question in Employment Law in California
over-payment by employer
I recently resigned from my job at Clear Channel Communications San Diego. I was a radio sales rep working for 100% commision against a $2500 a month draw. After putting my two weeks notice in, they told me that I owed them $8,400. Apparantly there was a gliche in their accounting system and they were overpaying me $1,200 a month for the last several mos. I get paid twice per month. My first check I recieve is my draw, which they were paying me. My second pay check is my commission check, where they are supposed to subtract out the amount of my draw ($2500). Due to the accounting gliche, they were only subtracting out a random amount of $1300 vs. the $2500 they were supposed to.
They error seem to be correct. I had them take out $500 out of my current check towards my debt. I also worked an additional three weeks and had them keep my last two pay checks...accepting no pay at all. This covered a little less than half of the $8400 I owe. I have relocated to Massachusetts and they want to put me on a payment plan to pay the remainder. Do I have to pay them back the remainder? what are my rights? thank you.
1 Answer from Attorneys
Re: over-payment by employer
I would first ask for an accounting to make sure their calculations are correct. But assuming, as you suspect, that they are correct and you have been overpaid, the money has to be paid back. You cannot keep what you did not earn.
Most employers are willing to agree to a payment plan. They have no interest in going to court if it can be avoided. Even if they went to court to get a judgment, it could take them just as long to get their money anyway, i.e. through a wage garnishment.
Figure out how much you need to live on and offer to pay them a monthly sum that you can afford. They may even be willing to reduce the amount by way of compromise, if you can pay them back sooner. Everything is subject to negotiation.
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