Legal Question in Credit and Debt Law in Virginia

Overpayment after termination

I got canned by my employer in Mid-November, obstensibly for insubordination but they're cleaning house to ensure that they make earnings. The HR guy was there along with my manager in the meeting so it wasn't spur of the moment. During the meeting I asked if I was getting any severance and was told no.

I called payroll the next day to see when I would be getting a check for unused vacation. They told me they hadn't gotten any paperwork yet and I was still an active employee but I had a check hitting tomorrow. I decided to wait and see what would happen.

They paid me for a month (direct deposit) before noticing. I then got a letter saying they had overpaid me and after backing out the vacation time I owed them just under $2000. I had six months to repay it or I wouldn't be eligible for rehire.

Today I got a mild letter from the corporation threatening collection. I'm now employed out of state, haven't worked for them in 7 months. What chance is there that I'll have to repay them considering that 1) They made the deposit, 2) I actually called payroll, 3) They let me go with no severance payment to begin with.

I was employed in Virginia at the time.


Asked on 7/01/02, 5:59 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Overpayment after termination

The facts that you cite are irrelevant: 1. That

the company made the deposit(mistakenly): 2.That

you called the payroll office; 3.That they let you

go without severance. If you were overpaid some

$2000 in error, you could be sued and a judgment recovered against you by the company for this amount.

The question as to whether you will be is quite

another matter, which probably reduces to simething like this: If the company does business in the state where you are now working

and they have an attorney available to bring suit against you, they very well may, particularly, since they know where you are. However, if they do

not do business in your new state, and have to

make special arrangements to engage the services

of an attorney to bring legal action against you, considering the cost vs. the benefit, they probably will not pursue the matter.

Read more
Answered on 7/05/02, 11:29 am


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