Personal Liability if an Employer Continues to Pay You After You Resign

My question involves a consumer law issue in the State of: Connecticut. If an employer continues to deposit payroll funds into your account for weeks or months after you resign because they did not close you out of their system, do you have any liability to pay those funds back? It seems to me that once your relationship with the employer has been severed, you have no obligation to turn down free money. I have no legal background, however, and am trying to get some experts to weigh in on this. Thanks.

Keeping money that you know you are not entitled to and which you have received by error, and that you know is by error, is called stealing in many circles.

Thanks for the reply, cbg, but are there any attorneys out there who know for sure? It really seems to me that the onus should not on me to get to the bottom of the employer's mistake and spend my own time navigating their bureaucracy to assist them in fixing their error. I'm not forcing them to put money in my account. It really does seem like it is their problem.

It is a crime. It's called Larceny and depending on the amount of money will determine if its a felony or misdemeanor.

Sec. 53a-119. Larceny defined
(4) Acquiring property lost, mislaid or delivered by mistake. A person who comes into control of property of another that he knows to have been lost, mislaid, or delivered under a mistake as to the nature or amount of the property or the identity of the recipient is guilty of larceny if, with purpose to deprive the owner thereof, he fails to take reasonable measures to restore the property to a person entitled to it.

Sec. 53a-122. Larceny in the first degree: Class B felony ... the value of the property or service exceeds twenty thousand dollars
Sec. 53a-123. Larceny in the second degree: Class C felony ... the value of the property or service exceeds ten thousand dollars
Sec. 53a-124. Larceny in the third degree: Class D felony ... the value of the property or service exceeds two thousand dollars

There are also 3 misdemeanor classes, but I'm assuming your paycheck over the several months has totalled more than $2000.

What makes you think I don't know for sure?

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Quoting ms1

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It really does seem like it is their problem.

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My momma always told me don't take what's not yours .. and you'll have no problems. Their problem will become your problem real quick. Its hardly stealing if the OP contacts the business and informs them of the error; ignoring it would be an issue. Its called unjust enrichment .. at the very least, a civil issue.

OP should write to the business' registered agent .. go to secretary of state's website for this information.

Thanks for the reply, cbg, but are there any attorneys out there who know for sure?

I'm not an attorney and I know for sure that you are liable to repay the excess payments. Keeping money you know was paid to you in error is stealing. If your bank mistakenly credited your checking account with $100,000 instead of the $1,000 you deposted, do you not think you are responsible for notifying them and returning the $99,000 you were mistakenly given? Hell yes, you're liable.

If this is happening to you, I strongly suggest you contact the employer immediately and tell them about the excess payments. Be prepared to repay the money.

If you don't, they absolutely will discover their error at some point and request a return of the money. If you refuse, they're free to file criminal charges and sue you for recovery. Is that a path you really want to go down?

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If you don't, they absolutely will discover their error at some point and request a return of the money.

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And if you for one second believe they won't notice, oh, honey, they surely will. And sooner, rather than later.

My husband's job accidentally double-reimbursed him for expenses once. We didn't notice, because on the pay day that happened, he got paid and got his expense reimbursement and his bonus, I got paid from all three of my regular contracts, plus a separate contract, plus an actual employer, plus a recurring royalty check. All electronically, and all while we were away on vacation.

His Payroll department caught it the very next week, called us up, and gave us the option of paying them, or having his check docked in the amount of the overpayment. I have no doubt that your former employer would have no qualms about giving you the option to pay up or be sued.