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  1. #1
    Join Date
    Sep 2014
    Posts
    3

    Default What Happens if My Employer Overpays Me

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

    Greetings! I'm posting on behalf of my wife who has been over payed for the last couple months.

    She is an hourly worker and an honest girl, so she informed her employer immediately. They thanked her and told her it would be fixed. Pay periods went by without the issue being corrected, each paycheck my wife informed them it was still not fixed.

    One manager even told her she would not have to pay it back, only pay taxes on it.

    Now, months later they tell her they want it all back in a week!. It's not a huge amount (under $1,000), and we have the money, but we feel it is not right to demand it back after she was told by a manager they would not try to collect.

    I understand legally they can drain it from our account, and that her manager will deny what he said.

    This was the last straw for her, she will be quitting her job this week. I contacted our credit union and they told me of a way that would prevent them from accessing the account.

    If I block their access to the bank account and my wife quits her job tomorrow what can they do to get back the money? Is it wise to block them?

    Any advice?

    Thanks a lot for reading!

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: My Employer Has Over Payed Me

    They can sue her. And they WILL win if they do.

    It would be much wiser for your wife to see if they will work with her to make payment plans.

  3. #3
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: My Employer Has Over Payed Me

    Agree, they will win if they sue her. And given that your wife didn't spend the money, she shouldn't have any trouble paying all the money back when the judge orders her to (just as she wouldn't have any trouble paying it all back now, hmmm).

    However, please note said lawsuit and the judgement will be in the public record, there for any of your wife's future prospective employers to find. In addition, there are no laws prohibiting your wife's current employer from telling prospective employers about what she did, i.e., quit her job abruptly and had to be sued to get her to fork over the money that's not hers. And finally, if your wife quits this job, she will not be entitled to UI benefits.

    What you propose doesn't seem to me like a very wise financial plan.

  4. #4
    Join Date
    Sep 2014
    Posts
    3

    Default Re: My Employer Has Over Payed Me

    I don't mind making the process as difficult and drawn out as possible for them, it's not about the money... I confess, that's just me being spiteful of the dogs she works for. I suppose it would not be wise if it would go on her record. Sigh... so there's nothing we can do?

    - - - Updated - - -

    Alright, not what I wanted to hear but thank you both very much for the feedback. It just made me so mad, the principal of it. I do wonder what kind of "receipt" she will get when she pays them back? Clearly they are bad with keeping track of money.

  5. #5
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: My Employer Has Over Payed Me

    It's not up to you whether to make it difficult for them. It's up to your wife.

    And they are free to let prospective employers know, when they call for references, exactly what transpired and whether she (or YOU) cooperated or not. So you might want to consider whether you want to make it harder for your wife to find a new job, just so you can feel smug or validated or vindicated because you let them know what you think of them and what a tough guy you are.

  6. #6
    Join Date
    Sep 2014
    Posts
    3

    Default Re: My Employer Has Over Payed Me

    She is at her new job now and asked if I could gather this information for her while she is away, so keep your theories to yourself.

    Also, standing up against dishonest people doesn't make us "smug" or "tough" as you put it. Clearly you're the type to lay down and take it.

  7. #7
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: My Employer Has Over Payed Me

    There is nothing whatsoever dishonest in attempting to collect an overpayment, even if it was their mistake and even if the way they are going about it isn't the most efficient. Sorry if that little fact escaped you.

  8. #8
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: My Employer Has Over Payed Me

    She may not be employed long if her new employer gets wind of this.

    Quote Quoting Shane85
    View Post
    She is at her new job now and asked if I could gather this information for her while she is away, so keep your theories to yourself.

    Also, standing up against dishonest people doesn't make us "smug" or "tough" as you put it. Clearly you're the type to lay down and take it.

  9. #9
    Join Date
    Dec 2009
    Location
    Lake Chapala
    Posts
    3,043

    Default Re: My Employer Has Over Payed Me

    Quote Quoting Shane85
    View Post
    Also, standing up against dishonest people doesn't make us "smug" or "tough" as you put it.
    A would-be thief calling the entity that made a mistake "dishonest"? Wow.

  10. #10
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Waht Happens if My Employer Overpays Me

    Quote Quoting Shane85
    View Post
    My question involves employment and labor law for the state of: Maryland

    Greetings! I'm posting on behalf of my wife who has been over payed for the last couple months.

    She is an hourly worker and an honest girl, so she informed her employer immediately. They thanked her and told her it would be fixed. Pay periods went by without the issue being corrected, each paycheck my wife informed them it was still not fixed.

    One manager even told her she would not have to pay it back, only pay taxes on it.

    Now, months later they tell her they want it all back in a week!. It's not a huge amount (under $1,000), and we have the money, but we feel it is not right to demand it back after she was told by a manager they would not try to collect.

    I understand legally they can drain it from our account, and that her manager will deny what he said.

    This was the last straw for her, she will be quitting her job this week. I contacted our credit union and they told me of a way that would prevent them from accessing the account.

    If I block their access to the bank account and my wife quits her job tomorrow what can they do to get back the money? Is it wise to block them?

    Any advice?

    Thanks a lot for reading!
    As you have already been told, your wife does owe the money, but I think that you SHOULD block access to the bank account. However, in reality it should not be an issue. They can only reverse a specific transaction and they have a limited amount of time to do so. They cannot just "take" whatever amount they feel is due to them.

    However there are some added complications as well, that are made worse by the fact that your wife no longer works for them. Many employers who make this kind of mistake expect the employee to pay back the gross wages that they received in error, rather than the net wages. They think that the employee will get back the extra withholding anyway, but they neglect to think about the social security and medicare taxes or even don't think to adjust the W2 to reflect the actual wages paid.

    What should happen is that your wife only has to pay back the net overage, and they should make adjustments with the IRS and the state to correct any overpayments they made to them...and her W2 should reflect only the wages she received after reimbursement. On top of that, DO NOT let this issue carrying into 2015, because it then gets even more complicated. Deal with it now.

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