Overpayment to withdrawal

[Mr. Smifflin]

What is the name of your state? California

I received a phone call from the receptionist of the company that I work for, stating that Finance had discovered that I had been double-payed for a week last October (10/03). I am currently checking into my banking records to verify this. The receptionist is telling me that the company is going to withdraw that money from me (my bank account, as I understand it). I did find it a bit odd that the receptionist of the local branch and not a member of the finance department called to tell me of this.

Two Questions:

Is a company allowed to do this, if it turns out that they did overpay for a week that occured almost a year ago?

If not, is the burden of proof upon me to get my money BACK or am I allowed to dispute it BEFORE they take the money?

 

[cbg]

I, also, find it very strange that a receptionist would call you about this. So strange, that rather than answer your questions I am going to advise you to contact HR or Payroll and find out whether or not there was any truth to this phone call. In my opinion, there's at least a 50 - 75% chance that you'll find the call was a prank. No sense getting upset about something that's not even going to happen.

Once you have done that, if you find that the company IS planning to make such a withdrawal, post back.

 

[Mr. Smifflin]

Looks like real situation.

I managed to get ahold of my account rep, and he verified the situation. In doing research on my end, I believe I now understand what the situation is.

During the time period in question, there was a payroll mistake, and I was not payed monies due. The situation was corrected the next week, and, apparently, I received a double payment on my next paycheck, which covers the one missed, and then a SECOND, seperate deposit hit my account. This second one was apparently ALSO supposed to take care of the missed week, as it is the exact amount of one paycheck (I get payed on a weekly basis, btw). So I do not know if two people were trying to rectify the situation or what; however, it appears that they made a mistake in my favor, and are now seeking to get those funds back a year later.

Now I am in the situation of have conflicting feelings about what to do. Obviously, I have received extra money. And equally as obvious, I am reluctant to voluntarily correct the situation ONE YEAR LATER.

I have had one double payment from a different company before; however, I caught that one the same week it happened and gave the money back immediately. Of course, in that situation, I had not already based financial decisions for almost an entire year on the results of it!

 

[cbg]

The fact of the matter is, if you received pay to which you were not entitled, you are legally obligated to return it. The fact that it is a year later is immaterial.

I don't know off the top of my head what the statute of limitations for a company to retrieve excess pay is in your state, but I don't know of any state where it isn't still legal after a year. I'm afraid you're stuck, like it or not.

 

[Mr. Smifflin]

Thank you for the advice! I had thought as much (though I had wanted there to be another option <shrug>), and am trying to get them to take the money out in installments, rather than one lump sum.