Q: Is it illegal to keep a direct deposit my former employer sent in error? If so what is the consequences?
I was terminated from my last position. The owner of the company gave me a final hand written check. The following week I received a direct deposit for the same amount. 2 days later I got an email saying they would reverse the direct deposit they did in error. I have moved the money from the account. I know morally I am wrong, but what are the legalities?
You have no legal right to keep money paid to you by mistake, and your former employer is within its legal rights to sue you to get the money back, with interest.
Good luck to you.
You have no right to the overpayment. You are legally liable for the full amount, plus interest and possibly attorney's fees.
Your affirmative action of moving the funds to block the reserve direct deposit means your former employer has a legitimate reason to question your honesty. Worse, you have probably lost any reference or possibility of re-hire.
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