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For how long does after erroneous direct deposits can an employer reverse the deposit?

Chicago, IL |

I left my employer on excellent terms 3 months ago. For 3 months I have received a deposit into my account as I normally would have if I had been working. However, I have not yet received a direct deposit/check for the vacation payout I am due. I have contacted the employer multiple times regarding the errors and have asked what I can expect, however the only response I have received is that they are looking into it. Additionally, some of my paycheck goes into a retirement account where the value of the investments fluctuates. For how long do I need to keep the erroneous deposits in the same account? For how long can they reclaim it? How would they reclaim the retirement investments? Must they notify me before reclaiming? What about when I go to file my taxes?
Thank you!

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Attorney answers 1


Tomorrow, why don't you go to your bank and stop all direct deposits into your account from the specific former employer? You and you alone control deposit allowance into your bank and retirement accounts with the bank.

Do your demand to block deposits in writing.

All deposits that you have gotten that you were not entitled to get will have to be returned. Clear this up tomorrow. If done in the same tax year, you will have no tax consquences if you accurately report the situation.

Good luck. And, I hope this helps.

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