Left Job/ paid too much

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Left Job/ paid too much

Postby Salcanny » Mon Jul 15, 2013 5:38 pm

I recently joined this forum, looking forward to joining the community.

I started a new job last week, and only attended training for two days before I decided it wasn't for me. I had direct deposit set up, and it turns out I got paid what i believe is a full week salary.

Can they go in and take back the whole amount without my notice? How can I stop this money from coming out since they made a mistake and I would hate for it t come out and cause me to pay overdraft fees and have an issue with the bank.

Thanks!
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Re: Left Job/ paid too much

Postby Rodc » Mon Jul 15, 2013 8:36 pm

Work three more days and you are good to go!
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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Re: Left Job/ paid too much

Postby CordMcNally » Mon Jul 15, 2013 8:42 pm

It isn't your money. I'd call them and let them know. Chances are, they're going to catch the mistake sooner or later.
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Re: Left Job/ paid too much

Postby FNK » Mon Jul 15, 2013 8:44 pm

Direct deposit agreements usually include a permission to correct errors, so they could do that. I think many HR departments tiptoe around departing workers to avoid legal liabilities, in which case they would not bother. Anyway, the honest thing to do is to call the HR and ask.
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Re: Left Job/ paid too much

Postby mlipps » Mon Jul 15, 2013 8:59 pm

Based on my reading of a great HR blog, Ask a Manager, my understanding is that if you're salaried and work one day out of the work week, they legally have to pay you for the entire week. Might be worth digging into a bit more...
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Re: Left Job/ paid too much

Postby Salcanny » Mon Jul 15, 2013 9:02 pm

mlipps wrote:Based on my reading of a great HR blog, Ask a Manager, my understanding is that if you're salaried and work one day out of the work week, they legally have to pay you for the entire week. Might be worth digging into a bit more...


Definitely will look into it.

Honesty is always the best policy. However, I didn't feel they were honest with me, so I am not so inclined to give them a call.
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Re: Left Job/ paid too much

Postby biturbo » Mon Jul 15, 2013 9:11 pm

mlipps wrote:Based on my reading of a great HR blog, Ask a Manager, my understanding is that if you're salaried and work one day out of the work week, they legally have to pay you for the entire week. Might be worth digging into a bit more...


One of the several exceptions to this rule is for the first/last week of employment (see 29 CFR 541.602, paragraph b(6)).

Unless they explicitly decided to pay you for the entire week, the money isn't yours, and you'd save yourself some trouble by dealing with it now rather than waiting until they notice it.
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Re: Left Job/ paid too much

Postby Salcanny » Mon Jul 15, 2013 9:13 pm

biturbo wrote:
mlipps wrote:Based on my reading of a great HR blog, Ask a Manager, my understanding is that if you're salaried and work one day out of the work week, they legally have to pay you for the entire week. Might be worth digging into a bit more...


One of the several exceptions to this rule is for the first/last week of employment (see 29 CFR 541.602, paragraph b(6)).

Unless they explicitly decided to pay you for the entire week, the money isn't yours, and you'd save yourself some trouble by dealing with it now rather than waiting until they notice it.


Thank you very much. So therefore, I am entitled to at least 2/5 of the amount they deposited?

Is closing my bank account too drastic, since they will just send me mail?
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Re: Left Job/ paid too much

Postby biturbo » Mon Jul 15, 2013 9:18 pm

Salcanny wrote:Thank you very much. So therefore, I am entitled to at least 2/5 of the amount they deposited?


Yes.

Salcanny wrote:Is closing my bank account too drastic, since they will just send me mail?


I wouldn't do that. If they really want the money back, they could still come after it later.

Whether they would or not is questionable - I doubt most companies would. In fact, they may know about the overpayment and have already written it off. That's why I'd contact them - worst case, you have to give back a small amount of money you didn't earn; best case - you get to keep it and don't have to worry about them coming back for it in the future.
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Re: Left Job/ paid too much

Postby TRC » Mon Jul 15, 2013 10:24 pm

They can't withdraw money from your account. This is their fault for not promptly letting payroll know.

All they can do is ask you to give it back.
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Re: Left Job/ paid too much

Postby BW1985 » Mon Jul 15, 2013 10:42 pm

I really doubt they would sue you for 3/5 of a weeks pay. Your morals may (or may not) be the driver to return the money.
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Re: Left Job/ paid too much

Postby RadAudit » Mon Jul 15, 2013 10:59 pm

Salcanny wrote:Honesty is always the best policy. However, I didn't feel they were honest with me, so I am not so inclined to give them a call.


Their dishonesty with you is not an adequate justification to be dishonest with them. However, it's a great rationalization.

Give 'em a call.
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Re: Left Job/ paid too much

Postby Default User BR » Tue Jul 16, 2013 2:17 am

TRC wrote:They can't withdraw money from your account. This is their fault for not promptly letting payroll know.

All they can do is ask you to give it back.

Want to bet? Do a web search for direct deposit reversal. Chances are the direct deposit agreement that no one reads gives them the right to take back money the employee isn't entitled to.


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Re: Left Job/ paid too much

Postby YttriumNitrate » Tue Jul 16, 2013 6:44 am

Another thing to look out for would be if they paid for any moving expenses they might try and get them back from you.
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Re: Left Job/ paid too much

Postby frugaltype » Tue Jul 16, 2013 7:28 am

Default User BR wrote:
TRC wrote:They can't withdraw money from your account. This is their fault for not promptly letting payroll know.

All they can do is ask you to give it back.

Want to bet? Do a web search for direct deposit reversal. Chances are the direct deposit agreement that no one reads gives them the right to take back money the employee isn't entitled to.
Brian


Sure they can take the money back. Give someone access to your account, they have access both ways. I had a discussion with a bank about this some years ago.

What does the OP mean, they were not honest with him? Did he find himself working for the mafia?

The answer to the OP's question is simple - call up hr and find out if you're supposed to get two days pay or a week's pay. There should not be an overdraft situation unless you spend more money than the two days. You didn't do that, right?
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Re: Left Job/ paid too much

Postby frugaltype » Tue Jul 16, 2013 7:29 am

YttriumNitrate wrote:Another thing to look out for would be if they paid for any moving expenses they might try and get them back from you.


Quite so. Usually one has to work a year for that to be final.
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Re: Left Job/ paid too much

Postby red5 » Tue Jul 16, 2013 9:09 am

Default User BR wrote:
TRC wrote:They can't withdraw money from your account. This is their fault for not promptly letting payroll know.

All they can do is ask you to give it back.

Want to bet? Do a web search for direct deposit reversal. Chances are the direct deposit agreement that no one reads gives them the right to take back money the employee isn't entitled to.


Brian


Agreed. This happened to my family a while ago. Company accidentally paid all the employees 2x for a single pay period. A couple business days later company took back the extra pay without seeking any kind of permission. It went without a hitch via all our bank accounts.
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Re: Left Job/ paid too much

Postby greg24 » Tue Jul 16, 2013 9:55 am

Salcanny wrote:Can they go in and take back the whole amount without my notice?


You filled out a direct deposit form. What did it say?
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Re: Left Job/ paid too much

Postby Tom_T » Tue Jul 16, 2013 10:13 am

greg24 wrote:
Salcanny wrote:Can they go in and take back the whole amount without my notice?


You filled out a direct deposit form. What did it say?

All the direct deposit forms I've ever seen from employers are pretty basic, and don't contain any language about employment terms. There may be something in the employment agreement. Or there may be some unwritten rule that nobody ever sees! Who knows... I would just tell them "this isn't for me", and see how they will handle it.
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Re: Left Job/ paid too much

Postby ieee488 » Tue Jul 16, 2013 10:28 am

frugaltype wrote:What does the OP mean, they were not honest with him? Did he find himself working for the mafia?


I would be interested too.

Exactly what weren't they honest about?

All 3 posts by the OP so far seem rather childish along the vein of I am not going to give them their money back because they lied to me.
To the OP, honestly - be a grown-up about this whole thing and act like a mature professional.
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Re: Left Job/ paid too much

Postby Meg77 » Tue Jul 16, 2013 11:18 am

I wouldn't worry about this too much. I don't think it's dishonest or immoral to just take whatever they paid you and move on with your life. It's not likely this is an error on their part; I bet that either they follow the rule to the letter about paying a minmum of a week for work, or more likely their payroll system just prorates pay to the nearest week instead of day. Who really cares? Bothering HR about it is probably just going to stress out some poor girl in HR who doesn't know why you were paid what you were and doesn't really care and now has to run this matter up the flagpole to more HR people who don't really care. It doesn't sound like we are talking about much money here. It also sounds like you may have been seriously misled about the job and its responsibilities if you felt led to quit after just 2 days anyway; if true, this may indicate a lack of organization or ethics in the company that could make trying to correct this "error" more trouble than its worth.

It would be prudent, however, to keep enough money in the account so that it won't go overdrawn if they do decide to come back in and take some of the money back out. It's very unlikely they will do this though.
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Re: Left Job/ paid too much

Postby greg24 » Tue Jul 16, 2013 1:58 pm

Tom_T wrote:
greg24 wrote:
Salcanny wrote:Can they go in and take back the whole amount without my notice?


You filled out a direct deposit form. What did it say?

All the direct deposit forms I've ever seen from employers are pretty basic, and don't contain any language about employment terms. There may be something in the employment agreement. Or there may be some unwritten rule that nobody ever sees! Who knows... I would just tell them "this isn't for me", and see how they will handle it.


They contain language such as that you are granting the employer the ability to withdraw any deposits that happened in error. The whole point of the direct deposit document is the permissions you are granting them when accessing your account. I would be surprised if he didn't grant them the right to withdraw the overpayment.
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Re: Left Job/ paid too much

Postby greg24 » Tue Jul 16, 2013 2:01 pm

Google "direct deposit agreement form". You'll receive a giant list of forms. Most of them, but not all, include a clause about withdrawing overpayment.

Example #1:

I hereby authorize Career Connections to initiate automatic deposits to my account at the financial institution
named below. I also authorize Career Connections to make withdrawals from this account in the event that a
credit entry is made in error.

#2:

I (We) hereby authorize IMH Financial Corporation, or its agent Registrar and Transfer Company to initiate automatic deposits to
my account at the financial institution named below. I also authorize IMH Financial Corporation or its agent Registrar and Transfer
Company to make withdrawals from this account, but only in the event that a deposit is made in error.

I could go on and on.
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Re: Left Job/ paid too much

Postby MindBogler » Tue Jul 16, 2013 5:40 pm

TRC wrote:They can't withdraw money from your account. This is their fault for not promptly letting payroll know.

All they can do is ask you to give it back.

Not true in both cases. I left a company several years back and months later received a bill of approximately $250 for overpayment of wages. They weren't asking for it back. This was a demand for payment the same as any other bill and they would have sent me to collections had I not paid.

As to the first statement, that is also incorrect and someone already explained that quite well.

To the OP: If you know you've been overpaid, contact the company immediately. The worst that happens is they confirm what you know and you pay them back. On the other hand, it might not be an error and you can keep some extra cash as well as sleep at night.
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Re: Left Job/ paid too much

Postby dziuniek » Thu Jul 18, 2013 11:11 am

Sure they can reverse it - when the company I work for deposited our weekly salaries twice in one week by mistake, they took it out of the account the next day.

So I don't see how your workplace couldn't do the same.
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Re: Left Job/ paid too much

Postby freebeer » Thu Jul 18, 2013 11:31 am

dziuniek wrote:Sure they can reverse it - when the company I work for deposited our weekly salaries twice in one week by mistake, they took it out of the account the next day.

So I don't see how your workplace couldn't do the same.


There is a difference between a mistake (like double deposit) and retroactive reimbursement of wages based on termination of employment after a partial week worked. Of course the company could call it a mistake even if that was not be strictly speaking accurate so that might be cold comfort if they have the money again. But by the same token you could remove the money to another account.

As noted by another poster Federal law deals differently with first-week and may not require payment of a full week for a salaried worker who quits 2 days in. But there may be applicable State laws or regulations, and/or something specific to your employment agreement, that governs the situation. So while the company could attempt to collect the 3 days wages it might be hard for them to attempt to prevail in Small Claims Court and you could potentially threaten them with a counter-suit if a collections effort were to damage your credit. I think most employers would run not walk away from the implications of going after someone for 3 days wages unless it was very clearly spelled out in a written agreement that you entered into what would happen if you left after 1 or 2 days. In which case sheesh just give them their money back. Again it's only 3 days, not a month or more.
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Re: Left Job/ paid too much

Postby Lumpr » Thu Jul 18, 2013 11:47 am

Are a few bucks worth the possibility that this comes back to soil your reputation? Be professional, call them and explain the situation. If they want the money back gladly pay them. This isn't about what your legal rights are, this about how to position yourself best after making a bad decision.
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