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  1. #1
    Join Date
    Apr 2011
    Posts
    1

    Default Reversal of Direct Deposit

    My question involves employment and labor law for the state of: Pennsylvania

    My very recent former employer direct deposited a paycheck for me today that I believe is in error. I realize that they are perfectly entitled to reverse it if they determine it was not owed to me.

    Questions:
    1) For what time frame are they permitted to reverse it? e.g. a year, etc
    2) To what lengths are they permitted to go to recover the amount, should the funds be withdrawn and the account closed (this question is purely informational)
    3) Do I have any obligation to proactively contact them regarding this?

    Other facts:
    - the payroll department is error prone; I've had numerous issues with both benefits and pay over the 6 years of employment
    - I was an exempt employee in very good standing when I left
    - last day on the payroll was 3/18
    - I should receive a direct deposit advice on Tuesday, as they mail today, which would detail what the pay is for

    Clearly, I am going to let it sit there, at least until I receive the DD advice. O

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    13,037

    Default Re: Reversal of Direct Deposit

    1.) I believe it's five days but Patty can correct me if I'm wrong. That's five days to perform a reversal. The SOL to reclaim the money by other means is much, much longer. I know of no state save Washington where it is under two years, though I have not had reason to research every state.
    2.) They can sue you, for one. And if they overpaid you and can prove it, they will win.
    3.) If you are asking, is there a specific law that says you must notify the employer about errors in your paycheck, no, there is not. However, you have NO legal standing to keep money that was deposited to your account in error and that you did not earn. NONE. No matter whose mistake it was or how often they have made mistakes. Keeping money that you know does not belong to you is called stealing.

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