Employees quits, gets paycheck for an extra 8 weeks
March 19, 2009 by Sam NarisiPosted in: Dubious decisions, In this week's e-newsletter, Latest News & Views, it's the economy - stupid
With staffing budgets shrinking, here’s a way for companies to save: Stop paying employees who no longer work for you. Sounds like an obvious strategy, but here’s one employer who could’ve used the advice.
Due to a payroll processing error, a bus monitor in Nashville, TN, quit her job yet still received a paycheck for an additional eight weeks.
When asked how it could happen, a spokeswoman for the school district simply said, “It didn’t get communicated to the person in payroll.”
Eventually, someone noticed the error, MSNBC reports. No word on how much money was paid, or if the district will try to recover it.
The worst part: School officials say the district may need to cut up to $15 million from next year’s budget. So, like at most employers these days, every penny counts.
This news comes less than a week after it was a reported a bus driver in the district was caught stealing more than $9,000 worth of gas for her personal car.
Tags: paycheck, payroll error, resignation
March 20th, 2009 at 11:03 am
Make her pay it back, and get rid of the person who was supposed to inform the person in payroll.
March 20th, 2009 at 1:14 pm
She must repay the money. She illegally cashed checks she did not earn. She can go to jail for fraud. In a court of law this is the same as stealing from a company.
March 20th, 2009 at 1:58 pm
i can’t write or say it any better than HR in Oh—-
March 20th, 2009 at 2:03 pm
well honestly, if an employer overpays someone they can’t ask for the money back. I would say fire the person that did the payroll.
March 20th, 2009 at 2:11 pm
Wonder where some people’s consciences are these days? I hope the company does go after her and I hope it also goes after the driver who was stealing gas for her personal car. Talk about biting the hand that feeds you!
March 20th, 2009 at 2:21 pm
The ee was most definitely wrong to not advise the district of their error and return the money. But I’m not surprised the ee didn’t do what was right – unethical decisions seem to be a sign of the times these days [unfortunately]. Criminal charges should be filed, for sure. However, I can see how this could happen. As my company’s HR Director, I have at times been the last to know that someone is out of the office due to illness for an extended time (FMLA notice needed – eeeeek!) or has submitted their resignation (ee tells me, ‘I guess you already know this, but today is my last day’). HR is very dependent on its Operations Managers to keep them in the loop, and it often just does not happen.
March 20th, 2009 at 2:43 pm
Yes, an employer CAN ask for the money back. If they don’t return it they can be charged with Theft by Taking…..
March 20th, 2009 at 2:45 pm
I once did p/r for a company that had people in a lot of different areas of the state, and ran into the same thing. The manager failed to notify anyone that the person had left. I was astounded that they could have been so remiss in informing p/r. The person was salaried, so no time card was required, and the system automatically paid salaried employees for 40 hrs/wk unless it was adjusted in some way. I instituted a checks and balance system after that and resolved any further issues.
March 20th, 2009 at 2:53 pm
So Betty, you feel my pain! I have attempted to implement checks and balances in my 3-year tenure in this role, but checks and balances won’t work if they are not endorsed [followed] from the top down… Admittedly, it is somewhat better now, but we still have a long way to go toward keeping HR in the loop. Guess we haven’t lost enough money yet… ;o)
March 20th, 2009 at 3:00 pm
I made sure it went to the top, and they were not too happy with what I showed them. That took care of that! But, you are right, without those at the top endorsing your efforts, it goes nowhere.
March 20th, 2009 at 3:22 pm
…and the saga continues! Such is the plight of an HR Director!
March 20th, 2009 at 4:24 pm
Something similar, not as extreme happened to me in college. I quit a company in August. They ended up direct depositing money in my account in November. I didn’t notice until February when I finally sat down to reconcile all my bank statements. I immediately went back to the business & told them. After investigating how it happened, it turned out I received a new hire’s check. They couldn’t figure what happened to the money & repaid her. Since w-2’s had already gone out & I was honest, they told me to keep the money.
March 23rd, 2009 at 8:52 am
I was paid an extra check via direct deposit after leaving a company once. When I realized I was overpaid I contacted them and was told no they did not over pay me. I let the money sit and about a month later I was contacted by the payroll gal saying she made a mistake and that I was right I was over paid by one check. I gave her some crap because she was a friend then gave the money back.
March 23rd, 2009 at 12:32 pm
lol-why fire the person in payroll if they were never notified. If anyone gets fired, it would be the person who didn’t advise payroll. It is theft and should be treated as such
April 7th, 2009 at 5:23 pm
I agree with Been there. Get rid of the ee’s direct supervisor for not noitifying not only payroll but HR also. HR has a fiduciary responsibility to make sure Cobra has been offered if applicable and other separation of employment issues that need to be addressed at the time of separation. In California we have 72 hours to get that final check to an employee if they voluntarily leave their jobs. Regarding the employee getting paid an additional 8 weeks post empoyment. That ee is a slug. But guess what? Desparate people do desparate things during desparate times.
Norma Jean Sinclair
Director of Human Resources
May 16th, 2009 at 8:19 pm
It is not theft. The person did not “steal” anything. The company essentially gave it away. Is there a moral obligation to return the money? Of course! But all of you saying that the company “should go after” the recipient for their stupidity is ridiculous. The company is 100% at fault, not the former employee.
May 21st, 2009 at 9:53 pm
I disagree strongly with nancy. While you are correct, the company made a mistake, they did not give it away. If a company overpays a supplier, and the company notices it later and the supplier never notifies the company, don’t you think it would be a different story? Of course it would.
By accepting payments that were paid for a service or commodity (labor) which was not performed or received, that is stealing. It’s the same as stealing company time, even. Of course, this person didn’t even work for the company, so how could they be entitled to the money?
June 5th, 2009 at 8:03 pm
In most states, employers have a right to recover the wages. In Texas, up to 3 years. Of course the company would have to sue and receive a judgment in order to collect. Depending on the sum, most companies would calculate the legal cost to recover is greater than the cost to sue.