QUESTION
how is it legal to force an employee to repay overpayment due to the mistake of payroll? what can I do?
Asked on Apr 16th, 2012 on Business Law - Kentucky
More details to this question:
A week ago, I was told that payroll made a mistake 8 months ago and that I had to repay the money. With the threat of having an entire paycheck going away, I was basically forced to agree to pay it back in 7 installments. I asked around and people are telling me that it is illegal.
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As a general matter, if you receive money paid by mistake, you must repay it. You did nothing to earn it and it legally belongs to the employer.
Answered on Apr 16th, 2012 at 7:19 PM