over paid

[azjnson]

What is the name of your state? Arizona
I quit my job at the end of the month to purchase my own business. I wrote a letter of resignation with a two week notice and personally gave it to my boss. On my last day of employment I had to find our HR representative to get my exit interview and was told she new nothing about ending my employment.
The HR representative did do an exit interview with me but did not have my last check for me so she told me that they would send it to me. I did not receive a check in the mail buy on the next scheduled pay period for the company I received a receipt for a direct deposit in to my bank account and thought that this was my last check that they owed me.
Two weeks later I received another direct deposit notice from the company on the standard pay date. I then looked at my records and noticed that they had paid me a full check for both of the pay periods. I then contacted my previous employer and told them about the error and they said they would look in to it.
My questions are as follows.
1. Can my previous employer sue me for fraud?
2. Can they just take the money out of my account?
3. Should they expect interest for the time period that I had the money in my account?
4. I know that morally I should give the money back but I am getting advice from some people to keep the money as a "gift" from the former employer?

What should I do, and how should I legally handle this situation so I can't be sued.
Thanks in advance,
Jamie

 

[divgradcurl]

1. Can my previous employer sue me for fraud?

Anyone can sue anyone else for anything. However, unless you did something fraudulent you are not telling us about, then it is just a mistake, and they would be unlikely to sue you for fraud. But keep reading...

2. Can they just take the money out of my account?

The general rule is that they would not be able to without a court order (that is, a judgment against you). However, there may be different rules pertaining to direct deposits -- I'll let cbg or beth3 chime in here.

3. Should they expect interest for the time period that I had the money in my account?

No, unless they ask for the money back and you refuse to give it to them -- then they can start expecting interest from that point on.

4. I know that morally I should give the money back but I am getting advice from some people to keep the money as a "gift" from the former employer?

Please -- a mistake in your favor is not a gift. You are not only morallt obligated to return the money, you are also legally obligated to return the money. If you don't, you will be sued by the company, and you will end up paying the money back anyway, plus interest, plus costs, and likely their attorney's fees as well.

 

[cbg]

1.) No, there is absolutely no reason to sue you for fraud and unless there is something VERY significant that you have left out, I can't see a case for fraud against you getting very far.

2.) I have never been certain whether this was a state law in my state or a Federal law, but my understanding is that they MIGHT be allowed to reverse the last direct deposit but they have a limited time frame to do it in; I believe three days. After that they have to wait for you to reimburse them. Note that reversing a direct deposit is NOT the same thing as reaching into your account and helping themselves - THAT they cannot do under any circumstances.

3.) I don't see why they should, but if they ask for it, check with a local attorney whether it is permissible.

4.) ABSOLUTELY NOT!!!! Unless they tell you themselves IN WRITING that you may keep the money, don't even think about pulling the "gift" card out of the stack. They would be perfectly within their rights to sue you for its reimbursement if you decide to take it as a "gift", and they would win. The fact that it is their mistake does not even remotely give you the right to keep it, morally, ethically or legally.

 

[azjnson]

update

I talked to my old HR rep and requested that they send me in writing a list of what they had paid me, what I was due for my last check, and the difference that I was over paid. One I got this I told her that I would send her a check.
She wanted to give me a verbal amount but I thought it was better to get all this in writing to be sure that their is a document that I can put in to my records showing what was exactly done.
Is their any thing else I should do to make sure I don't have any future issues?
Thanks,
Jamie

 

[cbg]

Yes. Send the check by registered mail; keep a photocopy, and watch for the cancelled check to show up in your bank statements so that you know they've received and cashed it. You can ask them for a statement saying that you no longer owe them anything, but it'll be up to them whether to provide it; you can't force them to.