One Atlanta-area janitor likely thought they hit it big after they were mistakenly sent over half a million dollars in overpayment by their employer, the Metropolitan Atlanta Rapid Transit Authority (MARTA).
MARTA asked them to give the $620,000 back. Five months later, they still haven’t — so MARTA’s taking them to court.
“I really never heard of [a payroll error] that had that much money involved in it,” said Charles Bridgers, an attorney who specializes in employment law, to Atlanta News First.
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$620,000 is a huge amount of money, no matter if you’re a janitor or a government body. It makes sense that both parties would be prepared to fight over it in court.
But which party is most likely to win? And what should you do if your employer overpays you?
Yes, you do have to give wage overpayments back
Unfortunately for the janitor, the law is not on their side. If your employer mistakenly overpays you, you have to give the money back, even though you didn’t do anything wrong. In all likelihood, the (now former) government worker will almost certainly have to give back the $620,000.
“We get calls like this fairly regularly,” said employment attorney Andrew Coffman to WSB-TV 2. “If someone receives an overpayment like that, they have to return it.”
If the janitor decides to fight this in court, they could very well find themselves paying both the $620,000 and any lawyer’s fees they incur in the process.
What happens next depends on where you live. The Fair Labor Standards Act allows companies to garnish your wages to get the funds back, even if that puts you under minimum wage. But some states, such as California, have laws that prevent employers from going that far.
Since the janitor is no longer working for the company, wage garnishment is no longer an option. That makes MARTA’s position difficult, even though they’ll likely win the case.
MARTA could choose to go through collections to get the money back. But if the employee has already spent the money and does not possess assets (like a house) worth an equivalent amount, it could have a tough time actually collecting.
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What to do if you think you think your employer overpaid you
You’re almost certainly not going to get an overpayment of hundreds of thousands of dollars with your next paycheck. But it’s still very possible you could be overpaid by a smaller, harder to spot sum.
The first step is to check your paycheck every time it comes in. That will help you spot a potential overpayment or underpayment, making sure you catch any employer errors before they impact your bottom line.
This will also keep you from spending money you’re required to give back later, saving you from financially painful wage garnishments.
If you notice an overpayment, immediately let your employer know so you can give it back. It’s tempting to keep it and hope they don’t notice — but many states give employers years to ask for their money back.
For example, Georgia gives employers two years to request an overpayment back. MARTA took around four months to notice the missing $620,000 — long enough for the janitor to spend a significant portion of the money, but very much before the legal window lapsed.
MARTA did not immediately reply to a request for comment.
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Kit Pulliam is a DC-based financial journalist with over five years of experience writing, editing and fact-checking financial content.
