Legal Question in Employment Law in California
Overpayment of Wages
My employer has been overpaying me (by about 25%) me for over a year and I just realized it. The error currently totals approximately $20,000. Am I legally responsible for paying them back?
1 Answer from Attorneys
Re: Overpayment of Wages
It should come as no surprise that a lawyer would say, "it depends." First, I wouldn't necessarily jump to the conclusion that the employer has overpaid you; there are numerous instances of under payment by employers as a result of mis-classifications of employees as nonexempt, for example. Also, you may have received a raise that the employer failed to tell you about. Finally, the argument could be made that the employer has decided to pay you more than you originally negotiated. Additional facts are needed in to determine whether you would be liable to pay back this amount. However, even if you are required to pay it back, most employers will work out payment plans to avoid catastrophic financial problems for the employee.