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Is it legal for companies to ask you to pay them back?
I had flex pay that was paid to me before the end of the year, and then I quit my job 3 months before December. Now they want me to pay them back. Is this legal?
This question was asked during Andrea Herran's presentation "The Importance of Payroll" during the Focus Interactive Summit: All Things Small and Mid-Sized Business.
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1 Answer
Hi Michael,
I'm unsure of your locale but I expect that it would be considered legal as they (the company) would have paid salary in anticipation of having the employee undertake work for them.
For me, more than the legal question here is the moral one. Is it morally justifiable for a person who has been paid salary in advance and resigns prior to completing an amount of service equal to the amount prepaid to keep the prepaid sum of money..?
When I think of it in that way there is only one right answer.
Andy.
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