My previous emplyer overpaid me due to a mistake in payrol. They just caught the mistake 6 months after I left the position and are asking for my gross pay back including the taxes that were removed from my paycheck. Am I responsible for paying them back the gross pay? net pay?
Generally, employers may not make deductions that run afoul of Labor Code section 221, which provides as follows:
221. It shall be unlawful for any employer to collect or receive
from an employee any part of wages theretofore paid by said employer
to said employee.
The statute covers wages earned and paid, as opposed to overpayments not earned. You should consult with an attorney to determine whether the "overpayment" is a true overpayment subject to payback or whether such a collection attempt may violate section 221.
No Attorney-Client Relationship. This post has been prepared by Daniel Velton of Velton Zegelman PC for general informational purposes only. The information provided herein does not constitute advertising, a solicitation or legal advice. Neither the availability, transmission, receipt nor use of any information included herein is intended to create, or constitutes formation of, an attorney-client relationship or any other special relationship or privilege. You should not rely upon this post for any purpose without seeking legal advice from licensed attorneys in your state.
Yes, you are obligated to pay back the overpayment. It would be gross pay including the taxes.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
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