Can employer take wages back?

[Caceena]

What is the name of your state? Texas

I need assistance with my situation. I hope my explanation isn't too long. I am currently on short term disability from my employer. There is a third party company that is located out-of-state that is actually handling the short-term disability claim. I am seeing two different doctors regarding my condition. The third party company requested documentation from my doctors and gave them a certain time frame to submit it. Both of my doctors had specific questions, tried calling the third party company to get them answered, but both weren't able to get a response from anyone. In the meantime, because specific information wasn't sent to the third party company within the specified time frame, they denied my short term disability claim and submitted their findings to my employer. I was informed by the third party company that I can appeal their decision, but I would have to gather the paperwork myself from my doctors and send it to them. They confirmed that they would not speak with either doctor because the specified time had already passed. My employer's respresentatives have called me to say that my claim has been denied, that I can file for FMLA, but I would have to pay them my last month's paycheck back in full. They have requested that I write them a check and then if after my appeal is favorable in my case, they would pay the money back to me. The complaint that I have is that my employer went into my bank account and has withdrawn funds without my knowledge or consent. Is this something that an employer can legally do?

 

[pattytx]

I'm a little confused. If they went in to your bank account and recovered the funds, why would they be asking you to repay it? Unless your account did not have enough funds to make the recovery.

I take it you have direct deposit. Under Federal banking regulations regarding EFT, the employer has 5 days following payday to initiate a reversal of your direct deposit. The authorization for direct deposit you signed should have had a statement saying that the employer had the right to originate reversing entries for transactions initiated in error.

 

[Caceena]

Texas
I don't understand why the company asked me either since they withdrew the funds on their own. The deposit was made on 11/26 and they withdrew funds 12/02. I guess they where within their time frame since that is law, but the direct deposit form that I signed did not specify this. The employer gives photocopies of the direct deposit form requesting that employees attach a check and fill in their personal and bank information. It does not include any such statement about reversals. I really don't know why they called me yesterday requesting funds. I guess they want more.

 

[pattytx]

I don't think the fact that it wasn't on the authorization makes it illegal for them to do, but it is stupid that they don't put it on there. Payroll best practices recommend that they do; that way the employee knows it is a possibility ahead of time.

I would ask them to give you a breakdown of your pay checks over the last few weeks, including what they reversed, and how they calculated what they say you owe.