My mom is getting laid off in February. She works at a bank who has been bought out by another company. She's worked there for 33 years. She just got a letter stating that in 1996 when they changed their payroll schedule to every other week, employees got an extra week of pay. For my mom, this came to just over $600. The letter states that she needs to decide if she's going to pay it right away or would rather it be taken out of her severance package. Every employee who is still there got this. I have absolutely no idea why they wouldn't have required them to pay it back at the time which wouldn't have been a problem since it was extra money they shouldn't have received anyway. It was their error and it seems kind of crappy that they would ask for it back from employees who are losing their jobs...especially after 11 years and at holiday time nonetheless. Does anyone know if this is legal after this amount of time?
wow. what a horrible way to treat dedicated employee's. There's got to be a time limit on this stuff. I would hate for her to spend more money potentially but I think I would consult an attorney. Maybe a bunch of the employees could chip in. I bet the bank doesn't have a legal ground to stand on.
I would talk to a lawyer before giving them a dime back.
T.,
Something similar happpened to me but the employer has never asked me to repay it. However, at the same time this happened I heard of a similar story on the news however it was a lot larger amount of money. Anyway, this guy got an attorney who fought it because the tax year had gone buy and this guy had paid income taxes on it and taxes on any interest that would have been earned from keeping it in the bank. Anyway, the attorney told the company that he would only return the money if the company could get a letter from the IRS stating they did not have to report any earning off of the money. Anyway, I am not a legal expert, but it may give your mom a place to start. If she has paid income taxes on it and reported on interest based off of it, I don't think the company has a right to ask for it back.
Good luck
I would contact the DOL and a lawyer. If this mistake was made in 1996 her tax return was effected and to take from this year will affect this years taxes. It does not seem right as the tax rates and deductions may have been different due to the rate of pay and tax brackets she was or is in at the time. It does not seem right to me. I have been in payroll and when we have done a transition of computer systems and a mistake is made had to be corrected immediately for tax purposes.
Your poor mom - that's AWFUL! The employees should get togther and get a lawyer. Good luck to her.
I work for a law firm and casually asked one of my attorneys who does labor stuff and she said that it probably was legal but that you Mom should make a stink and make them prove that she was overpaid. That was 11 years ago. If we were her we'd tell them she didn't recall being overpaid and they need to prove it to her. She should also ask if former employees who have already left have been requested to pay that money back also. They have to do it across the board, not just to those poor saps who are still working there. After 33 years of service and a mistake made 11 years ago, it's just such bad taste, even if it is legal.
Whatever she does, don't let them take it from the severance.
Definitely contact the Department of Labor and, if possible, a labor attorney.
And, no matter what anyone says...do NOT SIGN ANYTHING until she's spoken to the DOL and/or labor attorney. I cannot tell you how many times people have made mistakes of doing this and ended up having to pay whatever. By her signing any form, she is stating that she realizes she was overpaid and will pay it back (in whatever way). No, no, no, no, no. Do not sign anything.
Good luck!
You can try this site: http://law.justanswer.com/?r=galaw&gclid=CPTd2oKrnpAC...
I would consult with a labor attorney. Sounds a little fishy. Also, if your mom has worked there for so long, I would have HR do a full accounting of any vacation time, personal days or sick days not taken. If she has "extra" time coming to her, and it turns out she really does have to pay this money back, maybe it will help balance things out?
Maybe check with the Department of Labor? I know my husband had a conflict with something his HR department was doing and they settled it. Definitely in poor taste after 11 years with an employee of 33 years.
I would guess when they did the "buy out" they probably found this mistake while getting all the audits completed, and sent the letter collectively in the hopes that some people wouldn't even question it and pay it back w/o question. Because some people probably would.
In saying that, I'm guess that a statute of limitations has probably run out. So I would either talk to a lawyer, or, if you know of someone who is in HR and not affiliated with that company, ask them - because they might know as well.
Good Luck.
I would have the employees collectively contact an attorney and have the attorney issue a letter that they will fight this matter in court.
I would think that the statute of limitations has run on this but check with a labor lawyer for sure.
It doesn't sound legal but then who knows. Try to contact a labor attorney or if you know anyone in HR, ask them.
Good luck!
