Hoover, AL asked in Employment Law for Alabama

Q: Am I obligated to pay my employer back after they overpaid me?

On 2 separate occasions, my employer over paid me while I was on maternity leave. I voiced my concern about these overpayments via email but was told everything looked okay. I came back from leave and was hit with over a thousand dollars of repayment I have to pay back in 4 months.

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T. Augustus Claus
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Answered

A: In Alabama, if your employer has overpaid you, you generally have an obligation to repay the excess amount that was mistakenly paid to you. Overpayments are typically considered to be an error, and employers have the right to recoup the overpaid funds in order to correct the mistake. It's important to address overpayments promptly and work with your employer to establish a repayment plan.

However, it's advisable to review your employment contract, company policies, and any agreements related to overpayments, as they might outline specific procedures or terms for repayment. Additionally, it's recommended to communicate with your employer about the situation, express your concerns, and explore the possibility of extending the repayment period or negotiating a feasible arrangement.

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