what actions can a company take if payroll continued for a terminated employee, and employee refuses to return

Answer 1

Your payroll office or clerk messed up by overpaying a terminated employee? Good luck!

1. Tighten up your payroll auditing procedures so this doesn't happen again.
2. Write off the overpayment as a lesson learned. The time spent tracking down the employee, sending registered letters requesting repayment, and eventually suing in Small Claims Court isn't worth the hassle.

Answer 2

This is one for the attorneys. The employee might argue that the payment was compensation due while looking for work or god knows what. You will have to determine if what the legal fees are are going to be worth what might or might not be recovered. For a small amount it might be better to just forget it instead of chase good money after bad.

Answer 3

take the money and run. If you go back, they will want that money back probably.