Company continues sending $5,000 in paychecks to former employee who repeatedly reports the payroll error but receives no response from HR: ‘It is a very poorly run business and she has experienced silly things like this with the company before’

Advertisement
  • "Wife’s old employer overpaid her by nearly $5,000–silence on their end."

    "How long are we legally obligated to continue notifying them?"
  • My wife left her role approximately two months ago in MA. After she left, her pay continued―same exact check as if her benefits were taken out and all. She notified HR immediately
  • and they assured her it was her vacation payout (later discovered to be untrue as that payout eventually came). She has sent multiple emails to different
  • departments and has essentially gotten nowhere. It is a very poorly run business and she has experienced silly things like this with the company before. Not necessarily overpayment, but lack of administrative coordination.
  • We have not spent the money and are liquid with it as soon as they request it back.
  • Cheezburger Image 10467313408
  • However, we are nearing three months. How long are we legally obligated to continue notifying them of the overpayment, if at all? When can we take full legal possession of the money without fear of giving it back, if at all?
  • DialJforJasper OP Fortunately, she had accepted a better role with better pay at a great company :)
  • EccentricBalderdash In Massachusetts, the statute of limitations for an employer to recover overpaid wages is six years. You can not take full legal possession of the money for six years.
  • This is based on the general contract law statute of limitations outlined in Massachusetts General Laws, Chapter 260, Section 2. Yeah, I had to look that up.
  • Legally, you should just send them a check for the money or set it aside in a separate bank account (like a high interest savings so you at least make something) and wait for 6 years until you touch the money.
  • Most companies close out their previous year's books before the end of March and will not reopen them for $5,000.
  • DialJforJasper OP Super helpful. I wonder if it makes sense to toss it in with our mutual funds and see if we can make a little off the interest.
  • Sirwired The money is yours when the statute of limitations for a debt in your state elapses. Which will be years.
  • Cheezburger Image 10467313152
  • Beautiful-Plastic-83 You've told them multiple times, so I'd just keep it in a separate savings account, let it accumulate, and when the statute of limitations end, start withdrawing it.
  • The liklihood is that it will be discovered when they do their taxes, and then you'll be hearing from them.
  • 47986 Check her w-2. Is it included? You might need to make an appointment with the head of HR or someone in legal.
  • Gnie99 Most likely, she will receive notice upon the company detecting it. Then there will be a draft to her account to remove the funds paid in error.
  • Your_Moms_Box When did the vacation payout occur? It should have been in her final paycheck
  • If not you are entitled to double damages under fair wage act.

Tags

Scroll Down For The Next Article