Expert: Shirley McAllister, CPP, PHR - 2/28/2009

Question
My previous employer used a 3rd party company for HR/Payroll services. Four months after leaving the job, I noticed the company began paying me again (January ’08). I called my previous employer and made them aware of the situation. They spoke with their HR Company to inform them of what was happening. I called back the previous boss the next day and was told not to worry about it; the HR Company would retrieve their funds from my bank. I agreed and didn’t think anymore about it. In January ‘09, my former employer went to hand me a W2 at which time I told them I thought the HR Company had retrieved all their funds. The former company went back to the HR people who researched the problem and realized they had not taken enough out of my bank. Now, the HR Company is demanding the return of the funds which I do not have (1 month’s pay). I do not know how to proceed with this. Since I know the HR Company makes many mistakes, I wonder if possibly they messed up on my pay before. I know we always had employees trying to get their pay or vacation right with this company. I also worry that if I am force to pay it back, what will keep this company from finding another mistake and wanting more? By the way, I have been the one that has found every one of their mistakes thus far even though they specialize in this field. Thanks for your time.

Answer
Sounds like perhaps you should have taken your W-2 and left with it without starting another investigation.  If they have overpaid than they will try and collect from you.

Doesn't matter that you found mistakes, it appears that has not helped you at all to find them as it is now causing you problems for bringing the mistakes to their attention. And you are the one that did start the investigation.

If they investigated and researched it they should not come back with more money owed, they would have found all the overpayments due. They will have to take you to court to get it back, and perhaps they will not want to spend the money to do that.

Change you bank account immediately and open a new one in a different bank that they do not have access to. Do not voluntarily pay back anything or sign anything saying you will. Have no further contact with the company so you do not say something that could be construed as a verbal agreement to repay the money. Let them take you to court and then if they do the judge may only give them a portion of the money in judgement as they made the mistake.

Shirley