Tillamook, OR asked in Employment Law for North Carolina

Q: How long can a previous employer legally expect payback for income that was accidentally overpaid during employment?

The amount overpaid was under $2,000. There is no contract stating the overpayment would be paid back.

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2 Lawyer Answers
Kirton M. Madison
Kirton M. Madison
PREMIUM
Answered
  • Huntersville, NC
  • Licensed in North Carolina

A: First, it should be determined if the employee was actually overpaid. If there was an overpayment, the employer may ask them to return the money. If the employee refuses to return the money, the employer may take them to court to recover it.

Ina Shtukar agrees with this answer

Ina Shtukar
Ina Shtukar
Answered
  • ROCK HILL, SC
  • Licensed in North Carolina

A: The employer can recover the overpayment. I would advice the employee to return the money to avoid being accused of stealing it. Once you are on notice that you are not entitled to the overpayment and still refuse to return it, this could rise to conversion (stealing). It does not matter that there is no agreement to repay the overpayment. It is implied that people will do the right thing.

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