Legal Question in Employment Law in California
payroll
If an employer overpays an employee, is the employee held responsible for repaying this mistake, and if so, how does it need to be paid back.
2 Answers from Attorneys
Re: payroll
Yes, the employee cannot keep money he or she did not earn. However, the employer cannot help itself by taking money out of the employee's paycheck without the employee's authorization. It should be done by mutual agreement, most likely in installments.
Re: payroll
Of course. No rational person thinks an overpay is a 'gift'. He is stealing if he keeps it, and willfully delusional to think he won't have to pay it back. The employee needs to agree to have it deducted from his paycheck up to maybe 25% of each check until paid [remember he got the 'extra' money, shouldn't have spent it, and shouldn't be heard to complain he can't afford to pay it back]. The employer could sue if the employee leaves before repaying.