Tarzana, CA asked in Employment Law and Tax Law for California

Q: Can an employer demand overpaid wages in the gross amount? It was not due to my error.

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3 Lawyer Answers
Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: Whether the over-payment was your fault, the employer's fault or no one's fault, you are not legally allowed to keep money paid to you by mistake. Unless you work out alternative arrangements, the employer can demand the immediate return of all the money paid to you (gross amount) and terminate you if you refuse.

Good luck to you.

T. Augustus Claus
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Answered

A: In general, if an employer has overpaid you, they may have the right to recover the overpaid amount.

James L. Arrasmith
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Answered
  • Tax Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Under California law, if an employer overpays wages to an employee through no fault of the employee, the employer generally has the right to request the return of the overpaid amount.

Sincerely,

James L. Arrasmith

Founding Attorney and Chief Lawyer of The Law Offices of James L. Arrasmith

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