What Happens If You Accidentally Get Paid? What Happens If An Employer Pays You Twice?

According to Fair Labor Standards Act (FLSA), if you accidentally get overpaid as an employee, your employer has the right to recover the excess funds.

State labor and employment laws state that employers must recover any overpayment in full, especially when it occurs as a result of a mathematical or clerical error.

In some states like California, employers must first seek the employee’s consent for a reversal or else it will be termed an illegal deduction.

According to FLSA, there are certain steps to be followed in cases of employee overpayment.

What Happens If An Employer Pays You Twice?

A number of employers have the right to reclaim excess money paid to employees in either public and private sectors.

However, if you’ve been overpaid, and you refuse to refund the money, you could end up on the wrong side of the law.

It’s better to be fair and honest, rather than pocketing the money.

Not declaring an excess payment can ruin your relationship with your boss and if you work for a small business, an overpayment will look more like theft.