Rescinded Promotion but paid at higher salary

I'm a resident of California and applied for a transfer/job promotion to a new position within the company. Immediately after I accepted and signed the job offer, I found that there was a "transfer" freeze and I was unable to transfer to the new job until 2 months later. As compensation for delayed transfer, my current manager, through his boss, told me that perhaps it could be worked out that I could be paid the higher salary until I was free to go to the new job. I was paid the higher salary and was pleased with that. Subsequently, the company ran into financial difficulties, and my new job was in limbo, but I never received confirmation that the job was no longer available. After nearly 4 months I have now been told that human resources wants a repayment of the overpayment. Can the company legally ask for this? Thanks for any suggestions!

Repayment of salary increase

If the agreement to increase your salary was made contingent on your transfer to the new job at the time the agreement was made, then they would be entitled to the repayment. However, if a reasonable employee in your position would believe that the increase was not contingent on the position, then they are not entitled to the repayment.

To put it simply, if there was no understanding that you would have to repay the increase if you did not get the job, then you are not legally obliged to refund it.

Rescinded promotion

Thanks very much Loku for the response.

There was no understanding that I would have to repay the increase if I did not get the job. Technically, I had the job effective 11/1/2000, with the salary also effective that date, but was prevented from transferring until 1/2001.