Employer claiming I was overcompensated in 2008, demanding repayment.

[red92s]

I received a letter in the mail last week from the corporate HR department of my employer ( a Fortune 500 company). The letter is claiming that a "glitch in the system" caused me to receive an overpayment of approximately $250 last July.

The "glitch" is somehow related to my participation in the Employee Stock Purchase Plan, where contributions are withdrawn every check and stock is purchased every quarter. I withdrew from the plan and cashed out my shares last summer. My next paycheck included a negative deduction from the plan (so, a credit), which I assumed was my quarter-to-date contributions being returned to me (since they had not been used to purchase shares yet). This is the line item they are claiming was an error.

Obvisouly, it's not a huge amount of money (about 5% of one months take home pay); but it realllllllly cheeses me off that they can swoop in 9 months after the fact and say "there was a little glitch, give us the money back in two weeks". I suppose I don't have much recourse here, as they will simply deduct the amount from a direct deposit if I don't pay up.

So frustrating . . . I normally put about 80% of my mid-month pay into savings. Not this month I guess.

[disneysteve]

Be glad that you are good with your money and you can cover it without a problem. There are lots of folks out there who would be in deep trouble if they had to come up with $250 on short notice.

[red92s]

Originally Posted by disneysteve

Be glad that you are good with your money and you can cover it without a problem. There are lots of folks out there who would be in deep trouble if they had to come up with $250 on short notice.

Very true. I considered pulling it from my emergency fund, but then I'd just be putting money back into it when I got paid. Easier to just have it deducted and not write the check or transfer money around.

[boosami]

Everyone makes mistakes! It's too bad it took them so long to realize and correct their error. I bet (or hope?) they'd be willing to work with individuals who need more time to come up with the money since it was an error on the company's part.

[pikey412]

Tell them to shove it. You shouldn't have to pay them back.

[boosami]

Originally Posted by pikey412

Tell them to shove it. You shouldn't have to pay them back.

I disagree.

If you owed me $5 and handed me a $50 bill accidentally instead of a $5, wouldn't you want that money back? Just because you accidentally handed it to me doesn't make it rightfully mine.

[red92s]

Originally Posted by boosami

I disagree.

If you owed me $5 and handed me a $50 bill accidentally instead of a $5, wouldn't you want that money back? Just because you accidentally handed it to me doesn't make it rightfully mine.

I also happen to be very much in "don't bite the hand that feeds you" mode. It's really not worth making a huge stink over, especially with people with very easy access to my personnel file. The included all the relevant statements and pay stubs with the letter, so I'm inclined to believe I actually owe the money . . . I'm just not pleased about it.

[kork13]

I had this happen to me about 1.5 years ago (in truth, I accidentally caused the problem, by messing up a date on a travel reimbursement voucher)... Freaked me out at the time, but in the end it's just something that works out and isn't cause for too much concern.

[PrincessPerky]

One year my husband was paid double for months..we stuck the money in savings and kept telling them the trouble.

earned over a hundred in regular interest before they asked for it back.

Though I doubt they can recoup all the money they sent on taxes and the like...