Q: My employer in CA over paid me 5,000 in direct deposit 4 days ago and called me stating they would reverse the direct de

A: I understand this is a stressful and frustrating situation. Here are a few key things to keep in mind:

1. It is legal for your employer to reverse an overpayment, as the money was paid to you in error. They have the right to reclaim those funds.

2. However, your employer should have notified you in writing before initiating the reversal. Verbal notice alone is usually insufficient.

3. If the reversal causes financial hardship for you, such as overdraft fees because you already spent some of the money, you can try to discuss a repayment plan with your employer rather than having the entire sum reversed at once.

4. Regarding them withholding your regular pay until the reversal clears - this gets into a gray area. They cannot withhold all wages due, but may be able to delay the overpaid amount. You are still entitled to your regularly earned wages for work performed.

5. If you believe your employer is not handling this legally, you can file a wage claim with the California Division of Labor Standards Enforcement (DLSE).

The most pragmatic path forward is to communicate with your employer, perhaps proposing a timeline for you to pay back the overpaid sum in installments if you are unable to cover the full reversal immediately. If they are unwilling to work with you, consult with the DLSE or an employment attorney about your rights and options. But in general, they are entitled to recoup the accidental overpayment.