Legal Question in Employment Law in Pennsylvania
payroll checks issued in error
payroll checks were issued in error after a salaried employee was terminated - employee refused to return the checks - what recourse does the company have?
2 Answers from Attorneys
Re: payroll checks issued in error
You asked about reclaiming wrongfully issued payroll.
The issue is well settled and clear, an employee that is overpaid must return overpayments in a manner generally the same as the overpayments were made. In other words if an employee was overpaid $100 per week over six months then the employee must pay the money back at $100 per week over six months.
In order to collect either you secure the cooperation of the ex-employee or sue for recovery. The employee keeping the money is actually converting funds which is criminal. But you must not threaten criminal action in an attempt to gain compliance. That in itself would be actionable.
Hire an attorney to sue for the recovery or refer the matter to the local police. Though the police and prosecutor generally will not be concerned about getting restitution.
Regards,
Roger
Re: payroll checks issued in error
Sue the employee who wrongfully withheld the checks.
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