Legal Question in Civil Litigation in Massachusetts
Company deposited funds(payroll) in error
Received a letter from my former employer stating they made an error and direct-deposited a week's salary (several weeks ago) in error. At the time, I had made the assumption it was my last week's pay, (I had an extended payout/holdback over the summer as I am a teacher) and the money has been spent. #1. Am I obligated to return the money, as they admit it was their error? #2. If I am, is it reasonable (legally) for them to accept my offer to make arrangements to return money in installments (I am still unemployed, and to return the entire amount would be financially ruinous at this point. Thank you.
2 Answers from Attorneys
Re: Company deposited funds(payroll) in error
Take a look at your contract, there is probably a clause in there that states something to the effect that if you are compensated in error, they are still entitled to the return of the funds.
Requesting that they accept installments sounds reasonable. Basically, you cannot get blood out of a stone, so they may have no choice but to accept your proposition.
Good luck! Sincerely, Maria Murber
Re: Company deposited funds(payroll) in error
As a legal matter, you will have to return the funds. You are not entitled to them, and you cannot keep them. The timing under which you do so is less of a legal matter, and more a matter of practicality. It would only make sense for your former employer to work out a reasonable payment schedule with you, if that is all that you can afford to do. The alternative for them would be to try to collect the funds through the legal process, which could be expensive and time consuming. As long as you act reasonably and responsibly in your efforts to work something out and repay them, I would expect that the parties could work something out.
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