My former employer keeps sending me paychecks - can I keep the interest?

Question

Via direct deposit, my former employer -- whom I left approximately two months ago -- keeps making my regular pay period deposits. My paycheck after my final work day was correctly adjusted down for the proper amount, and I did not receive anything the following payday. The payday after THAT (3rd payday after I left), I received an amount slightly less than my normal paycheck -- this is my reimbursement for unused paid vacation. The following payday (4th after I left), I received what looks like a standard 80-hour deposit. Obviously that paycheck isn't rightfully mine. I have since transferred that amount into a high-yield savings account, and will not hesitate to repay it upon demand. Am I entitled to keep the interest generated (about $1500/year) from the payments? Is it legally acceptable for me to wait for the former employer to demand repayment? I have left several messages with their HR department, but to date nobody has returned my calls.

Answer 1

You can keep the interest; I just hope that the high interest account does not lock the money in for a certain length of time.

You need to send a certified letter to the company's HR department. Keep the receipt for the certified letter so you can get reimbursed out of the money you will ultimately send back.

It is important that you tell them because they can wreck your chances of getting a good reference from them for future jobs.

Answer 2

Hah, I'd like to know who you work for, because such has never happened to me. Anyhow, you are not entitled to that money and should rightfully return the money back to your former employer, as it seems their HR dept is clearly dozing off and not talking to the payroll department. Any interest you earned on the money is yours, because it is your account, but the total sum of the checks that you are not entitled to should be returned to the former employer. Also, don't assume that because they are not returning your calls that they are OK with giving you a monetary gift. They make come back 6 to 12 months from now and demand the money back when they realize how assinine of a mistake they made.

Answer 3

Sorry it is their money...all of it. Your decision to place the funds into a high yield account could be interpreted by your former employer as an attempt at fraud or embezzlement...a stretch true but possible.

Some might also say that you have a fiduciary responsibility to keep the funds secure for your past employer. Meaning that you have not manipulated property or funds you knowingly belong to them.

You need to send them a certified letter with a return receipt to establish your good faith efforts. I imagine that there is a set period of time that if they fail to recover their monies they lose claim but I am unaware of any specifics.

Answer 4

You need to make reasonable efforts to return the money.

Only you know if leaving voice messages with HR is a reasonable effort.

While I do not see anything illegal with what you are doing, ethically it is questionable. You are earning interest on money that is not yours.

Answer 5

I don't know if you can keep the interest, but you need to send them a letter ASAP about what's going on. Phone calls are not enough.

Answer 6

Yes, You will only be liable to return the amount of money they gave you, any interest you gain and they loose is "tough Shhhhh"

Answer 7

No you are required by law to hand over all interest too me. Small bills pleases.

Answer 8

Yeah, if they send you pay by mistake, they can ask for it back, but can't ask for any profits you have made on it. But as soon as they ask for it back, you must pay all of it back.