Employer claims to have overpaid final check...What to do

[EarPlug]

Vacation is usually accrued. Meaning you get a certain amount of vacation time either per hour, day, week, month or pay period. What may have happend is that she used more time than was acctually accrued at time of termination.

Paid Vacation: What Are Your Rights?
The rules for earning, using, and getting paid for vacation days at your job.

 

[Midniteoyl]

No, never heard anything. I'll keep my eye out for electrical jobs. Seems last I checked indeed, there were a few over the last few days that wanted robotic programming and PLC stuff. Dont remember where they were, but if I see any up north, I'll let you know.



Thats another way to look at it. But doubtful an amended return is needed. As someone else mentioned, the money was paid in 2012, therefore income taxes on it in 2012. IF paid back, likely would just have to deduct that amount from this years taxes, since this is the year we would be paying...


I did talk to an attorney friend. He just simply advised that we write a letter stating we disagree with their findings, and according to our records we were paid correctly. He said they likely wouldnt push it to their attorney/court over $500. But if they did, the next letter we get from them would likely be from their legal dept/attorney. And if it goes that far, to send another letter stating we still disagree but offer to pay half just to make it go away.

Agreed on both.. Just looked it up, and the IRS says you owe money on the overpayment in the year you received it. If you then have to pay it back at a later date, and that date is in the next tax year, you simply deduct it from your wages.

 

[Depmandog]

https://mywelcome.jpmorganchase.com/mywelcome/contentPage?country=USA

This appears to be the current year benefit manual. Perhaps you can find something here that helps...

 

[two_bit_score]

No, never heard anything. I'll keep my eye out for electrical jobs. Seems last I checked indeed, there were a few over the last few days that wanted robotic programming and PLC stuff. Dont remember where they were, but if I see any up north, I'll let you know.



Thats another way to look at it. But doubtful an amended return is needed. As someone else mentioned, the money was paid in 2012, therefore income taxes on it in 2012. IF paid back, likely would just have to deduct that amount from this years taxes, since this is the year we would be paying...


I did talk to an attorney friend. He just simply advised that we write a letter stating we disagree with their findings, and according to our records we were paid correctly. He said they likely wouldnt push it to their attorney/court over $500. But if they did, the next letter we get from them would likely be from their legal dept/attorney. And if it goes that far, to send another letter stating we still disagree but offer to pay half just to make it go away.

LD, your atty probably gave you the best advice however here is something else to consider. Most states have something like a 'payday law' that requires employers to may the money they owe employees according to the laws. In Texas this law is enforced by the Texas Workforce Commission. Your state probably has something similar. I would consider advising the company when I wrote the letter that your atty advised that I was also going to ask for an investigation by the TWC into the matter to ensure the Company was in compliance with the payday law because you think they may not be since their records dont match yours. Most companies dont want state agencies doing a lot of poking around in their business.

 

[brown40]

Hi LD,

Department of Labor demands better record-keeping than that, so I'd look higher up in the company to explain the situation and your wife's recollection. The data is there, someone just needs to dig it out.

So far as the duration it's been, they probably did a self-audit or had an outside agent come in and found discrepancies, one part of which was your situation, and are now trying to get back to "0"/balanced.

They can produce the policy, the hours worked, accrual rate, and time taken off... then it's just as simple as doing the math.

Employers are people too, and fair is fair, but it requires the mathematical proofing to ensure all parties interests have been sufficiently protected & honored... that is the standard everyone is expected to maintain.

Good luck, I hope the math shows no payback due!

 

[PILOON]

I once resigned a sales rep position and received a lawyer's letter claiming that when I returned the company car it was short 4 winter tires and 2 starters.
I replied to the lawyer that the starters were replaced under warranty and the bald tires were somewhere in the dump and did he want me to get scrap bald tires and ship them collect to my ex employer?
I also politely questioned his ethics to even write such a letter.
Never heard back.

 

[Brimfield]

Sick time is not owed after your employment ends. I once had a employer that refused sick time if you gave them a notice of your leaving them. One employer told me that vacation starts in July so when I left in March I was owed nothing. But I would contact your States dept of labor and see what they say. I think over a year has past and they should be the ones pounding the sand not you.

 

[LD1]

however here is something else to consider. Most states have something like a 'payday law' that requires employers to may the money they owe employees according to the laws.

NOt sure what you mean. The "may" isnt making any sense to me in that sentence.

I googled "payday law" and all I am coming up with is laws governing payday loan advances, from those types of places that charge really high interest.

 

[Midniteoyl]

'pay' the money owed.. is what I think he meant.

 

[two_bit_score]

NOt sure what you mean. The "may" isnt making any sense to me in that sentence.

I googled "payday law" and all I am coming up with is laws governing payday loan advances, from those types of places that charge really high interest.

I should have proof read the post.

Change "may" to "pay" and I think it will make more sense.

Here is a link to the Texas Payday law and you can find more if you google Texas Payday Law;
http://www.twc.state.tx.us/news/efte/accrued_leave_payouts.html

I'm not saying your case will fall in this statute or that your state has a similar law but it might be worth looking in to.