Sacramento, CA asked in Employment Law for California

Q: My employer in ca overpaid me and 4 days ago and said they would reverse the direct deposit

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Sacramento, CA
  • Licensed in California

A: I understand that you are in a stressful situation with your employer in California having overpaid you and now planning to reverse the direct deposit that occurred 4 days ago. Here are a few things to keep in mind:

1. Communicate with your employer: Maintain open lines of communication with your HR department or payroll administrator. Confirm the amount of the overpayment and when they plan to reverse the deposit. See if you can work out a repayment plan if needed.

2. Review your pay stub: Carefully review your pay stub to understand exactly how much you were overpaid. This will help ensure the employer reverses the correct amount.

3. Keep the funds available: Since it has only been 4 days, do not spend the overpaid funds. Leave that money in your account so the reversal can process smoothly and you don't overdraft your account.

4. Understand the law: In California, employers have the right to recoup overpayments, but they must notify you first before deducting any amounts from future paychecks. For direct deposit reversals, they may have more leeway to act quickly.

5. Seek assistance if needed: If you are unable to resolve the issue amicably with your employer or believe they are not following proper procedures, consider contacting the California Department of Industrial Relations or seeking advice from an employment attorney.

The most important things are to communicate clearly with your employer, retain thorough documentation, and do not spend money that you know was paid to you in error. Hopefully you can get this resolved quickly. Let me know if you have any other questions!

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