Can an employer require repayment of an overpayment made while on short term disability leave?
Question Details: I was approved for a short term disability leave through my employer for 2 months but ended up being out for 3. The last month I awaited a decision on my "extension" request, while being advised to remain on leave per my doctor's orders. After a month and a week prior to my return to work date of "pending" I received notice my disability claim had been denied for the third and final month requested. After reaching out to my HR about my return to work approaching, I was advised that because my claim had been denied I had been "overpaid". I was also informed at that time that I wouldn't receive my next paycheck and have to pay back any over payment to me.
If you were overpaid for any reason, the employer can seek the money back: the law is very clear that a mistake does not let you keep money to which you are not otherwise entitled.
They can't actually withhold your paycheck without your consent or agreement--the law is also clear about that. The proper way to recover money from you is to sue you for the overpayment.
You could potentially sue your employer for you paycheck, if they illegal withhold it. They will then sue or countersue you for the money you owe them. It may be best to allow them retain the money and apply against the overpayment, to avoid excessive and unnecessary litigation.