Legal Question in Employment Law in California

Overpayment after Termination

My last day of employ was Nov 9, 2000. I received a paycheck the first week of Dec. 2000. I called the payroll dept. immediately because if it was my final paycheck it was short the 296 hrs of vacation I had accrued. The payroll dept. verified my payroll record in the system and said that I had been terminated with a payroll code of �term with pay�. They explained that I would continue to receive a check until this code was changed and that I also would get a separate check for my accrued vac hrs. I did not receive a check for my accrued vac hrs, but continued to receive a monthly check through Mar. 2001. In Jan. 2002 I contacted the payroll dept regarding the payout of my accrued vac hrs. The payroll dept. responded at this time that a mistake had been made and that all monies received after my term date were an overpayment and apologized that I was given incorrect information. They claimed I now owed them $21,281.68 (gross overpayment minus vacation in lieu). The company has turned this matter over to a collection agency. Had the company told me this was an error when I first brought it to their attention I would have never cashed the checks. Do I owe the company the $21,281.68 they now claim is an overpayment?


Asked on 11/29/02, 7:19 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Overpayment after Termination

The issue is whether you collected more than was owed you for the unpaid vacation hours. If so, you owe them money. 296 hours is about 7 1/2 weeks of straight time pay. Sounds like you took more than that. If so, you should probably settle with them somehow or get sued. If you feel you need to hire counsel to help you negotiate a reduction of the amount owed, contact me.

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Answered on 12/03/02, 9:03 pm


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