Payroll Mistake - What are my Legal Rights?

[tgough2002]

What is the name of your state? CA

My payroll department sent my Direct Deposit to the wrong account number. Because of this I had to be paid by a physicall check. Now, my employer views this as me being paid twice, but my bank will not cooperate with them in giving the money into my account or back to them.

My employer is demanding I give the money back. I do not have the funds from the check in my possesion. Please advise me of my legal rights.

 

[hexeliebe]

Did you cash the check?

Did the bank correct the error and credit your account with the original funds?

If the answer to the above two questions is yes, then give the employer back the money.

If the answer to the second question is no, then inform your employer that they need to contact your bank for a resolution to this matter.

If both questions were answered no, then I have no idea

 

[tgough2002]

More Background

The funds were in the form of a Direct Deposit (wire transfer), but it went into the wrong account. The bank has not credited my account with the funds. I have never phsyically or way of banking accounts have had access to the funds.

 

[hexeliebe]

Then your employer can reverse the transfer of funds by using the same account number ...

This is a matter between your employer and your bank.

You might try to mitigate the damage by giving your employer a name and phone number of a vice president or branch manger at your bank to contact.

 

[tgough2002]

The bank will not work with my employer or with me. We know they have it, they just do not want to assist us. They have tried reverse the funds, but the account they sent it to( again it was not my account) was negitive balance and there fore can not be reversed. According to my bank

 

[hexeliebe]

Then your employer needs to hire an attorney. You should stay out of it. This is not your problem.

 

[JETX]

The KEY fact here (as I see it) was what party made the mistake as to the funds??

If you erred and gave them the wrong account information, you have to resolve this problem.

However, if the employer simply made the mistake (as I assume) then they have to resolve it..... not unlike sending a check to the wrong vendor or an incorrect amount. This has absolutely nothing to do with them issuing you a 'replacement' check due to their error. Simply, they are required by your state and federal labor laws to pay you for the time worked.

 

[hexeliebe]

That's a good point Jet

O.K. poster, did you give them the wrong account number or did they enter it wrong?

 

[tgough2002]

My payroll department keyed in the wrong account number.

 

[hexeliebe]

Then I think Jet and I are in agreement. This is an issue between the employer and the bank.

You stay out of it.