A Company's Legal Action against an Ex-Employee
Ken, a salaried employee, was terminated from his company in April of this year. Business had been slow since the beginning of the year, and each of the operating plants had laid off workers. Ken's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll officer. As had been the policy, checks for workers at remote sites were mailed to the employees. The mailing of Ken's checks continued for the next four weekly paydays. It was until the monthly payroll reports were sent to Ken's supervisor that the error was detected. Ken refused to return the four extra checks. What action should the company take?
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Solution Preview
Technically, the money belongs to the company and in cases where the individual knowingly kept the money, some may consider this action as indirect stealing. The company made a mistake, realized the mistake, and tried to repair it by demanding Ken return the money. Ken's refusal to return the money shows that he's ...
Solution Summary
Below is a solution to a case study pertaining to an ex-employee who was overpaid and yet refused to return the money. Given is a detailed explanation of what action the company should take and why.