The Dallas Fire Department accidentally paid a former firefighter $127,000 after he quit. Now it wants that money back

“There were many other Ivans and Gonzales’ on Captain (Corey) Womack’s roster, which prevented him from realizing Mr. Gonzales had not been removed from the roster,” the lawsuit states.

City officials declined to tell the Morning News whether this was the only case of former employees being paid in error.

Not just back salary

City officials allege Gonzales updated his banking information in the city’s payroll system after he left and moved to Florida, allowing the payments to continue being deposited into his account. In addition to the back salary, the city is asking the court to add interest starting from the date the lawsuit was filed.

“This money was not intended to be a gift,” city attorneys wrote in the lawsuit. “[These] payments belong to the city in equity and good conscience.”

Generally, employees who receive money after leaving a job are required to pay it back. But since this case appears to involve a clerical error by the fire department, the situation may not be so cut and dry.

In fact, the broader issue of repaying an employer after leaving is not always clear. Some workers who receive signing bonuses, tuition reimbursement or various types of training must repay those benefits if they leave within a set period.

Those are known as “stay or pay” agreements, meant to ensure the employers get a fair return on their investment.

TRAPS

In some instances, “stay or pay” agreements are criticized as tools to limit employee mobility. Critics call them TRAPS, or Training Repayment Agreement Provisions, which can require workers to pay thousands of dollars if they leave.