Legal Question in Employment Law in Utah

I am a commissioned sales person. 6 months ago I signed a contract with my employer where I would be paid a base salary + commission for 6 months. This was divided up as follows:

$3,000 per month base salary + 40% commissions on all sales made during that month.

My understanding was that my employer would pay me $3,000 + any commissions earned each month. Instead, my employer paid me $6,000 per month, every month for 6 months.

To make a long story short, I have been overpaid in commissions, to the amount of $11,000. My employer is now demanding that I immediately pay back the $11,000 (or he will begin legal proceedings). Most of the money I have been paid has already been spent. So, I am not able to pay it back at the moment.

Again, my employer decided to pay me $6K per month, without my input or understanding as to why he was doing so. He made the choice on his own to overpay me for 6 months.

I do wish to pay back what I owe (over time), but my question is: Since I never asked to be paid the $6,000 each month, do I have to pay this back immediately? My 2nd question is: what is the worst thing that my employer could do to me legally in this case? My last question is: What kind of legal defense do I have in this situation?


Asked on 11/13/09, 5:31 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

You do not have any legal (or moral) defenses because you received twice your agreed paycheck and should have notified your employer of the error. It is obvious that your employer did not "voluntarily" pay you - he was not aware of the oversight.

Your employer can sue you for the entire amount; plus can fire you for cause.

It would be wise to admit your error and make as good a deal with your employer as you can.

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Answered on 11/18/09, 10:43 pm


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