Legal Question in Employment Law in Louisiana
Payments made in error; staute of limitations for collection
A former employer (a Law Firm, by the way!) issued a check to me for an amount equal to the company's contribution to my 401k fund, approximately 17 months after my employment was terminated (~$3400.00). The check was written against the employers operating cash account, and made payable to me. 5 months later, a certified letter arrived from the employer stating that the payment was made in error, demanding a refund. I did nothing. 6 months after the first letter arrived, a second certified letter came, re-iterating the error and demanding repayment of the funds. 2 days ago, I received a message on my answering machine from an attorney at the firm asking me to call him regarding the 401k money, and he implied that if I did not, that they would take legal action.
Questions: Do they have any solid legal grounds from which to pursue repayment of this money? Is there a statute of limitations that stipulates a period of time from when the payment was made, beyond which they have no claim? 90 days comes to mind, for some reason. What's the likely outcome if they file a pursue this with legal action? Could I be held liable for more than the amount that they originally paid to me?
1 Answer from Attorneys
Re: Payments made in error; staute of limitations for collection
Of course, if the money is not rightfully yours you should return it immediately. If the money paid to you represented your vested interest in the 401(k) plan, with the exception of income tax issues, it should not matter whether the money came from the employer's check book, or the 401(k) plan's check book. In any event, you should communicate, in writing, with your former employer to determine your rights, if any, to receive funds from the 401(k) plan and that right's relationship to the money actually received by you. Upon receipt of their explanation, you probably should consult with an employee benefits attorney to interpret their explanation of your rights if you feel they are in error.
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