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Am I legally required to repay an overpayment from my employer?

Am I legally required to repay an overpayment from my employer?

Q: Can an employer make you pay back an overpayment?

Yes, employers can ask for repayment of overpayments. If there is a clear understanding of your pay rate, courts usually support repayment. However, if the overpayment was a mistake without prior agreement, the situation may be more complex.

Q: Can you refuse to pay back an overpayment?

You may be able to refuse repayment if the overpayment was due to your employer’s error and there was no agreement in place. However, if there is a clear agreement about your compensation, refusing may not be legally justified.

Q: Do I have to pay back a payroll error?

Typically, if a payroll error results in an overpayment and there is a clear agreement on your pay, you are required to repay the excess amount. If the error was solely the employer's fault, recovery may be more challenging.

Q: Do I have to pay back a payroll mistake?

Yes, if a payroll mistake leads to an overpayment and there is an agreement about your compensation, you usually must repay it. If the mistake was due to the employer's fault without an agreement, the obligation to repay could be less clear.

Full question:

My employer overpaid me and is requiring me to pay this money back. Am I required by law to repay this amount?

Category: Employment
Date: 04/07/2025
State: South Carolina

Answer:

Generally, courts are hesitant to let employers recover overpayments made due to their own errors, especially if there was no agreement allowing for recovery. However, if there is a clear agreement regarding compensation, such as an hourly wage or salary, courts typically will require the employee to repay the overpaid amount.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can an employer make you pay back for a mistake?

Yes, an employer can generally require you to repay an overpayment made due to a mistake. However, this often depends on whether there was an agreement regarding your pay. If the overpayment was due to the employer's error and no agreement exists, they may have a harder time enforcing repayment.