Legal Question in Employment Law in Pennsylvania
Pay back wages
My daughter received a raise that she did not yet deserve. After several months, the store discovered the mistake but kept paying her the wrong amount for several more pays. They are taking away her raise and are insisting she pay the $700 back. Since it was not her error, she got mad and quit. They have kept her last paycheck, have not paid her for an earned vacation and are threatening to sue a 19 yr. old full-time student/part-time worker. What can she do?
2 Answers from Attorneys
Re: Pay back wages
It's annoying but they can do that. Because she wasn't entitled to the extra pay it wasn't hers to keep. She should have 1) brought this to the attention of payroll and 2) set aside the extra money.
If she had remained employed the company would have been limited in getting the money back. They would have had to choose the lesser of two amounts. Either they could choose to withhold the money in the same manner that it was paid or they could ask for a statutory percentage of her pay until the full amount was repaid, whichever is the lower amount per pay period.
According to the laws in your jurisdiction they may have the right to withhold the last paycheck but may not have the right to offset that against the amount owed. She needs to work this out with the employer because they can sue and they will win, plus costs.
Hope this answer helps. If I can be of assistance on any other legal matter please feel free to arrange an appointment.
Roger Traversa
Re: Pay back wages
As I see it, There are two issues here.
First, with regards to her last paycheck.
If they have or if they do hold her last paycheck beyond the payperiod immediately following her resignation, the employer is in violation of PA's Wage Payment Law.
Regarding the $700.00, you daughter was unjustly enriched by the employers mistake. Accordingly, they can sue her for the $$$. What they can not do is deduct the amount from her last pay or withhold her last paycheck to offset their loss.
This answer is based on the little bit of information you have provided, additional facts may change my opinion.
If you would like to discuss your possible options in this matter, please feel free to contact me. My inital consultation is free.
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Regards.