Refund of Overpayment

[J D Williams]

Texas.
My former employer overpaid me by approximately $4800 when I voluntarily left the company in January 2004 by issuance of a check. I was on salary, so I did not misrepresent hours worked, nor did I commit any type of fraud that led to issuance of the check.

I was not sure what the pay was for, but I cashed the check and spent the money assuming I was entitled to it. I received a letter in October from the company stating that the payment was made in error, that I was not entitled to the payment. They have requested that I refund the payment to them.

I do not have the funds to repay them. Am I legally obligated to repay based on their error? What recourse do they have if I refuse to pay? The company is a Major oil & gas corporation located in CA. My place of employment and current residence is in Texas.

 

[cbg]

Of course you have to repay it. If you were not entitled to the money, you don't get to keep it just because you are innocent of fraud. If you do not repay, they can sue you. And they will win.

I know it's too late now, but for the benefit of others who will read this (because this question comes up frequently) what you should have done was called them when you received the check and asked what it was for, rather than assuming that a check that arrived out of the blue for no apparent reason was an entitlement. I don't mean that to be rude.

Your best bet now is to get in touch with them and see if they will sit still for a repayment schedule.