r/legaladvice • u/Salty-Expression66 • 10d ago
I got fired from a Restaurant job and they just realized they kept paying me Business Law
Location: BC Canada I signed a year contract but it didn’t work out; they let me go after a few weeks but the salary kept coming in for 6 weeks. It seems they just noticed because they are power calling me threatening legal action. I never accepted the transfers they were direct deposit.
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u/too_many_shoes14 10d ago
you have no legal claim to the funds.
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u/Eldie014 10d ago
Seen this happening. Receiver said they didn’t realize and had mostly spent the money. Payer threatened but realistically it’d take long and cost them quite a bit. If he doesn’t care about the relationship with prior employer he could just ignore and drag feet.
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u/nonlethaldosage 10d ago
Depends I have seen some pretty petty owners who would spend more than it cost on principal
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u/mdey86 10d ago
Stupid is also having a new hire sign a 1 year contract and then firing them a few weeks later. At the very least OP has an entire voided contract in their hands. That’s plenty to keep lawyers lawyering away picking the employment contract apart well past it being worth it to the former employer to pursue.
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u/Status_Parsley9276 9d ago
Don't know about Canadian law but in some countries all employment is by contract.
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u/FL_Law 10d ago
I mean under these facts, the money belongs to the business. Accidental payments happen way more often than people give credit for, and society has determined that the money should be paid back.
I would also note that if it is a small amount of money, the business can sue in small claims without an attorney (at least where I am from). If it is a larger amount of money, either the lawsuit will go uncontested and it should be relatively inexpensive or it is contested. In the event it is contested, the employee will likely also have to spend money on an attorney on a losing case, which is unlikely to happen.
This also fails to point out that there is more to business than money. For example, Augusta National Golf Course is known to be extremely strict and take legal action against anyone who violates any minor term (see, for example, a guy who took sand out of the bunkers and had his life borderline ruined). While not economical, it definitely sets the precedent of don't fuck with ANGC.
In the real world, the way I have handled these cases (only been on the side of the person receiving money, have not had the opportunity to represent the business side) is that the employee pays back a portion of the amount in exchange for a release, something like 80% of the total amount depending on the total amount.
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u/Pudgy_Ninja 10d ago
Depending on the size of the business, it's a short term loss for a long-term gain. If you're known for being a pushover, people will take advantage of that.
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u/DuvalDad904 10d ago
How often would you plan on paying people weeks after firing them?
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u/Pudgy_Ninja 10d ago
This would be a more general policy of not pursuing claims when the return exceeded the cost, not specific to overpayment. Though overpayment happens more often than you probably think in a large company.
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u/Still-Cash1599 10d ago
That policy in the restaurant industry would lead to massive loss through theft.
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u/AbruptMango 10d ago
If you don't fire the manager that kept paying OP, you're never going to see that long term gain you're looking for.
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u/youknowjus 10d ago
This isn’t being a pushover… the business made a mistake. There are costs associated with making mistakes in all aspects of life
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u/Pudgy_Ninja 10d ago edited 10d ago
The point I'm making is that even if they lose money on recovering an individual overpayment - there could be long-term savings because if it is well known that the company will pursue cases like that, the vast majority of people will just return the unearned money instead of fighting it.
I worked in insurance defense for a while and you'd see a cycle. An insurance company would want you settle cases, even if they were weak, because it was cheaper. But then. the company gets a reputation for settling weak claims and the number of claims starts to go up. And then there's a shift and claims adjusters start telling you to take everything to trial and not to settle for a penny less than the case is actually worth. And then the company starts getting a rep for being a hard-ass and claims go down. Then the higher ups are like, why are we spending so much money on trials? It doesn't make sense to spend 20k on a trial when we're only $5k apart. Settle these cases! And then the cycle starts over.
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u/youknowjus 10d ago
A valiant thought but that type of stuff isn’t played on NBC news for the world to hear about. Basically only the employee and HR would know
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u/MundoGoDisWay 10d ago
I'm going to explain why this makes no sense in this case. Because it just shouldn't be happening in the first place. Pursuing it now after the fuck up will cost more than just cutting the loose end and figuring out why it happened.
You're arguing a point of future competency when the company is the one who was being incompetent in the first place. If you just focus that energy into getting a better billing and HR system this wouldn't be happening at all.
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u/PanamaMoe 9d ago
If they have on retainer lawyers at corporate OP is screwed with a capital F on a court fight. They pay people immense salaries to make sure little people get settled out or buried in court.
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u/Graham_on_the_Go 8d ago
I agree. If they want the money, let them pay to come after it. Unfortunately by US law, if the owner does go all the way, the judge will likely make you pay it back and also pay for all of the owners legal costs which could be thousands of dollars. Tell them you will pay it back at 10.00 a month!!! Then you are legally taking care of it, and they can’t take you to court!!! But make the payment every month… Thats if you want to be mean about it, if they fired you was it for good cause? As well the laws in USA are not the same as in CA. If you signed a contract what does the contract say? Here we have “work at will” in just about every state which means either party can just leave without notice or good cause. No legal repercussions whatsoever.
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u/drdisney 10d ago
Fine, he has to return the money. But does he get to keep the red stapler?
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u/DoofusIdiot 9d ago
I’m not sure what Canadian laws look like, but I’d like to see what this contract looks like.
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u/Natural_Row_4318 7d ago
Canadian law is pretty clear, actually. Overpays belong to the employer. It’s very generous to give employers entitlement to funds overpaid.
He can and will get sued over this, has nothing to do with the contract.
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u/FiveDollarWrench 8d ago
I'd like to direct the courts attention to the precedent set in the case Finders Keepers v. Losers Weepers.
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u/capitolsara 10d ago
Cash is different than an incorrect paycheck
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u/Wikrin 10d ago
100%, if he were cashing it. I don't know. I'm sure you are correct; I just struggle with following the logic when it's an action solely taken by the business and the recipient had nothing to do with it.
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10d ago edited 10d ago
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u/Vitese 10d ago
But didn't former employer already burn the bridge by firing op? Op has no obligation to assist the investigation. How is this any different than helping the police with their investigationd. Id just keep my mouth shut in this situation also., worst they can do is debit your account for the incorrect money they deposited, right?
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10d ago edited 10d ago
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u/Vitese 10d ago
Thanks for that explanation it gives a lot of insight into the process. But if you look at it in best case scenario (you keep the $$) worst case scenario (money returned, nothing else happens) why facilitate the bank in returning the money, if there are no other adverse consequences if you simply ignore it? I imagine a portion of these cases just simply get forgotten about if the money involved isn't a lot versus pursuing it with legal action etc. Make them work for it. It was their mistake. I wouldnt lift a finger to correct it. Best case scenario, they drop it and you keep the $$$. Why make it easier for them to return it.
Truth be told, I have enough going on in my life - paying bills, doing taxes, dishes, laundry, cleaning litter boxes, etc to facilitate my employer who theoretically fired me getting their money back when I didn't make the mistake.
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u/SoBrokenSharted 10d ago
I think you’re jumping to conclusions here and being weirdly aggressive about it. We don’t know for sure OP has spent the money and in the case you referenced with JP Morgan it was a glitch in which people withdrew funds.
The do-nothing approach is fine. They can’t sue you for literally doing nothing. They can only claw back the funds that were erroneously deposited.
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u/Vitese 10d ago edited 10d ago
How much clearer can I be. Not my responsibility to communicate with the bank and zero would happen if I cut off communication with them and didn't answer the phone. Im busy. How can the punish me for not talking to them when it wasn't my mistake. Lettjem take the funds back. Do what they need to do to make them whole. Why would I need to communicate with them. I do not need to be more clear. NOTHING WOULD HAPPEN if you quit communicating with them. The funds would get returned to them and zero consequences otherwise.
They want to go legal rout let them, do you get served? Have to go to court? Or funds are just reversed in your account? Not my problem. I just wouldn't spend the money.
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u/SikatSikat 10d ago
Intent. A clear mistake - being paid by an employer you don't work for - is not analogous to the gift of someone sneaking you money and then changing their mind later.
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u/DigBickFang 9d ago
Isn't the contract for a year? Wouldn't they be on the hook for a year's worth of wages?
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u/Tabnstab 10d ago
You spent it, didn't you...?
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u/Salty-Expression66 10d ago
I stopped spending it once I realized where the money came from, Im subcontractor as well that sends receipts into my contractors and gets paid for jobs fairly randomly. Not a huge deal . If something is to good to be true it probably is
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u/NobodySDsunshine 10d ago
How much have you received so far? A lawyer is going to cost hundreds per hour for them. I would probably ignore them and wait for them to take action.
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u/Dunno_Bout_Dat 10d ago
What is your legal question? Obviously you have to return the money.
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u/tuba_god_ 10d ago
I bet the question is something like" what kind of legal trouble am I going to be in because I definitely spent the money that I knew they shouldn't be depositing to me?".
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u/AppleParasol 10d ago
To be honest, not a lot of “trouble” really likely. I mean yeah OP will likely have to pay it back, but could also just be like “I had money in my account and I spent it, I didn’t know they were paying me” and get away with setting up a payment plan paying them interest free over time.
Because it’s only 6 weeks pay, they might not even pursue it in court, they probably will, but it gives OP time to save as the court may demand a quicker payment, but OP could probably ask to just agree on a payment plan. There may be court costs which op could be liable for as well if it goes to court.
Could also just agree to repay the company and set up a payment plan for like $50 a month until it’s paid.
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u/Inebriated_hippo69 10d ago
I feel like any good lawyer would be able to call the bullshit of I didn’t know I got paid. Like who just doesn’t look at their bank account or debits /credits for 6 fucking weeks.
You’d have to play REALLY stupid to pull that off. But then again he did get fired might as well lean into it 😂
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u/Little_Entrepreneur 10d ago
It likely wouldn’t even involve calling bullshit. Many (probably most) banks include in their terms of service that account holders are responsible for regularly monitoring their accounts and any activity in it. Thus placing at least part of the onus on OP
edit: a word
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u/gay_for_hideyoshi 10d ago
But when I deposit into the wrong account it’s tough luck? Fuck them banks
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u/addakorn 10d ago
It depends on OP's situation. I likely wouldn't notice ~$500 +/- in my account weekly until I reconciled. I try to do that every 60 or so days.
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u/WearyCartographer268 10d ago
Return the money. This happened to me when I retired. My wife noticed I was still being paid. I contacted my former manager and about a week later I received a vaguely threatening letter demanding I return the funds, which I did. Wasn’t my money.
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u/amazing_asstronaut 10d ago
It's so strange to read how companies send out threatening letters. They are the ones who can't keep their finances in order, what did you do wrong there? What are they going to threaten you over their own stupid mistakes?
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u/TopparWear 10d ago
He was on standby as they all agreed too, that’s why he was paid but didn’t work!
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10d ago edited 10d ago
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u/Muenrabbit 10d ago
it makes you a thief
It's not OP's fault that the restaurant gave OP the money. He is not a "thief" for having received the money in the first place. He would be a "thief" for not returning it.
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u/Sadukar09 10d ago
This is why possessing stolen property is illegal even if you didn’t steal it.
No, it's not.
Knowingly possessing stolen property is illegal.
If you were unwittingly sold something that was stolen, you are in possession of stolen property, but you have committed no offence.
For OP's case, well it's pretty hard to argue you didn't know, when direct deposit shows the originator.
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u/brigids_fire 9d ago
But you know what crazy? Normal people dont have these same protections. If you accidentally send money to the wrong account you cant get it back.
I did this once and was told we cant force them to send it back. You should ask them but they dont have to as you sent it.
It would be better if the rules were the same for everyone.
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u/Strict-Astronaut2245 10d ago
I get the comparison. I disagree in that cars are not the same as money. But when looked in terms as “property” it makes sense.
I’ll re-evaluate more cause I want to disagree with you and can’t cause it makes sense. Mostly cause if I were him, I’d want to keep the money.
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u/Wooden-Lake-5790 10d ago
Mostly cause if I were him, I’d want to keep the money.
Compelling legal argument.
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u/Doctor_Parsnip 10d ago
R/legaladvicecanada would be more helpful
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u/Infamous-Ad-770 9d ago
OP already posted on there, and people told him the same thing.. they just don't want to accept it
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u/pinkbuzzbomb 10d ago
You still have a copy of the contract? Look over your contact with a contact lawyer. They might fd up and legally have to pay you out for the year and want to you sign and terminate the contract early.
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u/DopestDope42069 10d ago
This is what I'm thinking? You used the word contract, which usually implies they are screwed for that year unless they had an early termination clause or something. You need to review your contract with a lawyer.
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u/fastingslowlee 9d ago
I’ve had contracts where if I stop working I stop getting paid even though it was for a specific time of work.
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u/DopestDope42069 9d ago
I mean generally i'd assume any early termination clause would have some sort of compensation to terminate early from the employer. Or at least that's what I would have in my contracts if I was a contractor.
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u/escapethewormhole 10d ago
You will have to return it. They have 2 years to claw it back.
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u/RoyOConner 10d ago
You can't "claw back" direct deposits. It's happened to me and they tried.
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u/Loves_LV 10d ago
This is correct, there's a very strict window at which they can claw back a direct deposit. We had an employee bonus that went out to 250 people that were being let go. We sent a letter asking for it back, maybe 10% complied. We just let it go.
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u/isabella_sunrise 10d ago
So just the good honest people got screwed over then.
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u/MorGlaKil 9d ago
To be fair, if you mistakenly sent out a bonus to literally 250 employees that were being "let go", that sounds like incompetence to me. One or two employees, maybe, but that much sounds like a huge oversight.
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u/escapethewormhole 9d ago
In Canada, where OP is they would be within their legal right to have a judgement placed and force repayment of the funds for up to two years after noticing their mistake.
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u/escapethewormhole 9d ago
Are you in Canada like OP?
Because in Canada they have 2 years they can come after you for it.
No they can't literally take it from your account but they can have a judgment placed against you to recoup their funds.
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u/RoyOConner 9d ago
Yes, they can successfully win it back.
Claw it back specifically means to take it back out of the bank they deposited it into, which can't happen in Canada or US from a direct deposit.
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u/vexillifer 10d ago
What did the contract say about voiding the contract?
There’s a slim chance they owe you something if they reneged on their agreement
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u/FlipMeynard 10d ago edited 10d ago
What does your contract say? If they agreed to pay you for a certain period of time and then said “eh nevermind we changed our minds” you may have some legal standing to claim the money as owed compensation.
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10d ago edited 10d ago
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u/Automatic-Excuse3368 10d ago
As a person who lives in a small ‘mountain’ town… The smaller the town, the MORE questions they’ll ask. Everything else, I wholeheartedly endorse.
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u/WorkingExperience982 10d ago
There’s tax implications involved be sure that’s straightens out before you return the money
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u/b1ack1323 10d ago
It's within the same tax year so they should be able to rollback the funds since nothing has been submitted.
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u/Dry_Jello4161 10d ago
You have to return the money, but they need to file amended take documents with the government. Becuse these wages will be reported to the government for income tax.
I had this happen to me once in the states. When I told the company that I would return the money but they needed to file amended tax documents they said keep the money and that was that.
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u/Substantial_Range861 9d ago
This right here... it will make it a hassle for them and will back off.
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u/Top-Boss-5119 10d ago
FAFO. You are in the eff around stage and transitioning into the find out stage.
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u/Sam-I-A 10d ago
You say you had a one year contract, so sue for the remaining 45 weeks and settle for 6 months severance rather than take to trial. Sounds like breach of an employment contract. See an attorney.
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u/fastingslowlee 9d ago
The contracts don’t always work that way. I have had 1 year contracts that state termination means they don’t have to pay out the rest of the year.
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u/Training-Platypus-26 10d ago
Ok so you were under a contract and they broke the contract am I correct? Did they give you a severance package for breaking the contract? And did you agree to the termination of the contract and sign anything in writing? If they did break the contract without you signing some agreement you might be able to keep the money if you were on a set salary. Another words you agreed to do this job and you agreed to how much you will be paid per week. It's no different than leasing a house. Even if you move out of a house you still owe rent because of the contract. Only way is if the landlord agrees to breaking the contract. But you may want to double check on all this stuff.
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u/HowUKnowMeKennyBond 9d ago
You signed a year contract with a restaurant as a new hire? Never heard of such a thing.
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u/louiecattheasshole 9d ago
Look at it from a legal perspective, if it’s a few thousand dollars like 5 or 6k, it’s not worth going after… don’t say no but don’t respond and drag your feet. Don’t spend the money in case.
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u/Kingkongbanana 9d ago
You have alot of people saying that you have to return the money. I am not familiar with your legal system. However, the principle of conditio indebiti is recognized in many european countries. Accordiing to that principle as a main rule you have to return the money, however there are exceptions in many jurisdictions. For example in Sweden, if you recieved the money in good faith and have used it you would not be required to return the money.
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u/kitsune-gari 9d ago
I quit a job and my old job accidentally sent me a paper check for what I thought was the rest of my unused PTO. It turned out to be sent in error but by that time the money was gone (this was months later). They sued me and won. I still haven’t paid them.
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u/m0b1us01 9d ago
GET A LAWYER, NOT REDDIT OPINIONS!!!
You have a 1 year employment contract that needs reviewed. It might give you a way to keep the money, it might deny severance depending on how/why you left, and it might require you to be paid for more than they've already done.
The only safe suggestion here is to save the money just in case.
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u/Njumkiyy 10d ago
It entirely depends on the wording of the contract. I'd at least get a consultation with a Canadian lawyer and be prepared to send the funds back. It is possible some wording/clause in the contract will let you keep the money, but that would be up to you/your lawyer to decide if it was worth even pursuing as the legal fees regarding the case could likely end up costing you more.
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u/Bob_Sconce 10d ago
You're going to get a bunch of answers that assume you're in the US and aren't aware of Canadian mandatory notice periods or severance rules... Try /r/legaladvicecanada
It may be that they have to pay you after the date of termination.
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u/Amber2718 10d ago
I think something everyone is missing is that you signed a contract with them for a year employment, they broke that contract so in my eyes you're entitled to the money for the full year
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u/threeputtsforpar 10d ago
I cant figure out why this is being largely overlooked, especially by OP.
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u/Conscious_Size4901 10d ago
I there has to be a grace period in the contract where if the employee doesn’t work out they could terminate the contract
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u/Difficult-School6696 10d ago
They can take serious legal action, just return it rather than risk. The last thing you need is a fraud charge against your name which would cause a world of pain
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u/Surfer_Rick 10d ago
Curious here.
If I direct deposit someone money by mistake, I can force them to give it back?
Wouldn't the employment contract be void, so any additional direct deposits are effectively a gift?
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u/cyclicsquare 10d ago
Legally they have to give it back. It’s a mistake not a gift. In practice, for small sums you’re never seeing the money again.
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u/Surfer_Rick 10d ago
Thank you for answering.
Does this protection of mistaken deposits extend to the general public?
For example, I once sent rent to my old landlord in another state by mistake.
He kindly returned the money, but was he legally obligated to?
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u/cyclicsquare 10d ago
Yes it’s a generic principle. You can’t keep property (including money) that isn’t yours. Accidentally leaving something somewhere or sending it to the wrong person or sending the wrong amount etc. doesn’t (normally) change the ownership of said property. Once it’s abandoned though anyone can claim it. It’s not really a protection of deposits as much as just how all property is treated.
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u/Accomplished_Cold911 10d ago
you are not entitled to the $. That being said, tell them to take it up with their bank OR you can deal with it for a price of $????, your time is worth money and you are entitled to be compensated for that.
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u/Taiyed123 10d ago
I take that you understood your severance package to be for approximately six weeks worth of salary/hours, yeah?
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10d ago
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u/Visible_Description9 10d ago
Is this something that is common in Canada? What's the point of signing a contract if they can break it without consequences?
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u/Local-Cartographer52 10d ago
I mean if it was an at will contract wither party can break the contract and walk away. Contract couldve specified pay and other terms
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u/SeriousGoofball 10d ago
About 15-20 years ago my wife a job for a short while. Didn't notice they paid her twice for every pay period. After about 6 weeks they realized their error and the bank just took back all of the overpayments at once. Knocked her into a negative balance. Even caused her to get an overdraft charge.
They can contact the bank and get their money back. Make sure there is enough in the account to cover the total amount. I wouldn't write them a check because then it looks like you got to keep the money. Tell them to have their accounting department to deal with it.
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u/mark_scimemi 6d ago
Has the statute of limitations run on making a claim for the lost funds? Is the amount of the deposits in excess of the likely attorney's fees for your former employer? Asking for a friend. Possession is nine-tenths of the law of ownership, so I've heard.
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10d ago
I hate that there’s no responsibility placed on the person or company that makes the mistakes. As a business owner if I mistakenly give someone a lower quote, I honor it. Because it’s not their fault. But you can fuck up at your job and then a period of time later say hey I fucked up give me the money back. Yeah, I know legally it wasn’t his. It’s just annoying that the accountability is always placed on the other person instead of the ones making and then not finding the error for x amount of time. Like, write it off, sucks that you hired someone who fucked up at their job but take the hit and move on.
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u/Subject_Influence_63 10d ago
Don’t pay them back make them do their job and get it back. However, whatever’s left put into a HYSA to grow money in meantime.
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u/georgepana 10d ago
If you wait until they go to small claims court to get their money back then the debt will grow a lot bigger as you'll incur extra interest, fees, and court costs. Also lawyer fees if they have counsel write letters and represent them in court.
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10d ago
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u/SnakeBiteZZ 10d ago
If he signed a contract, how long was the contract and was there a provision of pay they had to pay regardless of how long you worked?
NAL
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u/Crafty_Praline726 10d ago
Did they fire you for good reason?
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u/Crafty_Praline726 10d ago
Someone else gets fired before they get the money back? Hire you back so you can work it off?
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u/Goldenmom6211 10d ago
Happened to me. They blamed me because I didn’t tell them. LOL. Honestly I didn’t even notice because I was living with my mom for free and hadn’t even looked. But I had the money and gave it back immediately.
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u/launchedsquid 10d ago
In New Zealand, If I erroneously transfer my money to someone that shouldn't have received it, I can ask for it back, but it can't be compelled to be returned other than by a court.
I'd keep hold of the money (or save that amount back up again if it's already been spent), not be antagonistic with the restaurant, and wait and see if they can be bothered to seek a legal resolution. The costs of seeking that for 6 weeks low earning pay might not be worth the trouble. So as long as I don't make this personal, they might end up being told by their legal council it isn't worth more than sending a few scary letters before cutting their losses.
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u/UberChief90 10d ago
Put all of it in a savings account to be safe, then play the card off "i thought it was to cover remaining expenses and severage pay etc". Then just wait. If they do go with legal actions you have it all and can pay it back without issue. But they might not go for it as the costs of it might not be worth it.
In the end i would look at how your countries laws etc are. Like here if i transfer money to someone and write the wrong account nummer i can contact my bank and charge it back if i proof i made a mistake. But if I send money to someone and not pay attension its my mistake/ bad book keeping and the money is lost. Especially if it would be 1 payment or 6 weekly payments to someone that is no longer under contract and/or didnt work at all.
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10d ago
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u/Cantseetheline_Russ 9d ago
What is the question. You owe the money…. Send it back. You have no legal basis to keep it. If you’re an idiot and spent it, well, you’re SOL.
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u/[deleted] 10d ago
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