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Inaccurately Paying a Terminated Employee

Scenario: Bart, a salaried employee, was terminated 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. Bart's dismissal was processed through the Human Resources Department, but the information was not relayed to the corporate payroll office. As had been the policy, checks for workers at remote sites were mailed to the employees. The mailing of Bart's checks continued for the next four weekly paydays. It wasn't until the monthly payroll reports were sent to Bart's supervisor that the error was detected.

Bart refused to return the four extra checks. What actions should the company take?

Solution Preview

First, the company should write a formal letter to Bart asking for the money back. If this fails, some states have laws that directly address this issue and if it is a significant amount of money, it would be wise to start legal proceedings. Most ...

Solution Summary

This solution is comprised of a 170 word response which details some of the actions which the company can take against Bart, who in this situation was being paid money he did not earn. This response also details whether these actions are useful or not,