Am I passively committing fraud?
January 6, 2010 3:47 PM Subscribe
I'm getting paid too much for workman's comp. Am I responsible for saying so?
I got my first workman's comp check this week, and it's about 150 dollars more than it should be (which is 66% of my normal gross). It looks like somewhere between my employer and the insurance company, the numbers got screwed and they think I make more than I do. I have not cashed it yet. If this continues, and they were to catch it, am I legally responsible for the extra money? Or is the burden on them since I have no part in reporting my wages? Extra money would be a godsend, and no this is not a question of morality for me, but I'm not wanting to commit fraud. I'm in Kentucky, and I know you're not my lawyer.
I got my first workman's comp check this week, and it's about 150 dollars more than it should be (which is 66% of my normal gross). It looks like somewhere between my employer and the insurance company, the numbers got screwed and they think I make more than I do. I have not cashed it yet. If this continues, and they were to catch it, am I legally responsible for the extra money? Or is the burden on them since I have no part in reporting my wages? Extra money would be a godsend, and no this is not a question of morality for me, but I'm not wanting to commit fraud. I'm in Kentucky, and I know you're not my lawyer.
A family member of mine once got overpaid by a large amount, but since it was direct deposit and they were not very good at keeping track of their money, they did not notice. When a company audit took place they caught this overpayment and my family member was made to pay back the overcompensation. I would say something. The worst case scenario (losing your job and possibly being sued) is not worth the extra cash.
posted by pwally at 4:00 PM on January 6, 2010
posted by pwally at 4:00 PM on January 6, 2010
I've heard about many similar situations in which people have had to pay the money back. I'd assume someone will eventually find out and you'll be on the hook for the extra cash.
posted by something something at 4:00 PM on January 6, 2010
posted by something something at 4:00 PM on January 6, 2010
Tell them and rest easy.
posted by fire&wings at 4:11 PM on January 6, 2010 [1 favorite]
posted by fire&wings at 4:11 PM on January 6, 2010 [1 favorite]
They can very well make a claim against you for the extra money, so get confirmation in writing that they are paying you the proper amount. It sounds like they are not, so make it clear that this is your concern. This isn't just fraud, it's a potential headache down the road.
posted by disillusioned at 4:13 PM on January 6, 2010
posted by disillusioned at 4:13 PM on January 6, 2010
tell them. i once was overpaid at a company for about 3 months. i think the reason they never asked for the money back was because i brought the overpayment to their attention--more then once.
posted by lester's sock puppet at 4:33 PM on January 6, 2010
posted by lester's sock puppet at 4:33 PM on January 6, 2010
Yeah, sorry, really better to fess up then get used to that money and have a big hassle later. Maybe you'll get lucky and they have some other metric that they are using. Bring the check in and ask your manager to check on it.
posted by amanda at 5:06 PM on January 6, 2010
posted by amanda at 5:06 PM on January 6, 2010
Call your HR or the insurance company (or the state or whoever issues the check) and say "this check looks wrong to me, I think you overpaid, can you please confirm if this is correct?". They will double check, and if it IS wrong (maybe YOU calculated wrong!) they will issue you a new check, or request you send back the extra if you cashed the check.
I accidentally calculated my time off dates wrong on my FMLA leave a couple of years ago, and was paid for 5 extra days. I had no clue, but they figured it out a few months later and called asking for the extra money back. They didn't go wild and threaten to sue me or anything, just explained the error and how much I owed.
They will eventually figure it out, and you will have to pay the money back. Don't get all worried, just call and sort it out. Fingers crossed you calculated wrong and the money is rightfully yours! :)
posted by Joh at 5:09 PM on January 6, 2010
I accidentally calculated my time off dates wrong on my FMLA leave a couple of years ago, and was paid for 5 extra days. I had no clue, but they figured it out a few months later and called asking for the extra money back. They didn't go wild and threaten to sue me or anything, just explained the error and how much I owed.
They will eventually figure it out, and you will have to pay the money back. Don't get all worried, just call and sort it out. Fingers crossed you calculated wrong and the money is rightfully yours! :)
posted by Joh at 5:09 PM on January 6, 2010
IANAL, but I once asked one about the hypothetical situation where I got paid too much by my employer, wondering exactly who the onus was on to deal with the situation (me to report it, or them to catch it). This was a casual question and the answer was given with the usual "This is not legal advice"-style disclaimers.
She told me that it was on me, citing some legal statute or another that essentially said that since I would have done nothing to earn that extra money, a court would pretty much always rule that I would have to pay it back.
I'm in Canada, so YMMV depending on your local legal statutes, but you should probably just report it.
posted by dnesan at 5:34 PM on January 6, 2010
She told me that it was on me, citing some legal statute or another that essentially said that since I would have done nothing to earn that extra money, a court would pretty much always rule that I would have to pay it back.
I'm in Canada, so YMMV depending on your local legal statutes, but you should probably just report it.
posted by dnesan at 5:34 PM on January 6, 2010
Just to be on the safe side...are you sure you are getting overpaid? Could you have left 401k, health, flex plan etc out of the equation?
posted by ian1977 at 5:43 PM on January 6, 2010
posted by ian1977 at 5:43 PM on January 6, 2010
Yeah, I had the same thought as ian 1977. Make double/triple sure you're not actually getting overpaid.
If you are, you should definitely tell them.
posted by ORthey at 5:50 PM on January 6, 2010
If you are, you should definitely tell them.
posted by ORthey at 5:50 PM on January 6, 2010
nthing tell them. I got overpaid to the tune of several hundred dollars once, and by the time they rectified the situation I had left the job, gone back to school, and completely forgotten the whole thing (I was the one who reported the overpayment, but no action was taken for months) and spent all the money. Having to send them a check for the overpayment amount was a sad, sad thing.
posted by crinklebat at 5:56 PM on January 6, 2010
posted by crinklebat at 5:56 PM on January 6, 2010
I *think* there's a period of time during which they can ask for the money back, so if you do cash it you should definitely hold on to the excess.
But if you want to know if something is legal, you need to ask a lawyer. Or just give it back.
posted by meta_eli at 6:09 PM on January 6, 2010
But if you want to know if something is legal, you need to ask a lawyer. Or just give it back.
posted by meta_eli at 6:09 PM on January 6, 2010
Tell them, and then put the overpayment(s) into a savings account until they rectify the situation and very clearly (in writing) tell you that everything is okay or that you owe them money back. Once that is clear, you can pay it back and keep whatever interest you made on it.
posted by phredgreen at 6:24 PM on January 6, 2010 [1 favorite]
posted by phredgreen at 6:24 PM on January 6, 2010 [1 favorite]
Listen to ian1977. In my state, the percentage is calculated on gross wages plus the value of fringe benefits.
posted by megatherium at 6:39 PM on January 6, 2010
posted by megatherium at 6:39 PM on January 6, 2010
Bringing it to their attention and / or paying it back has the added bonus of making you look like a good person in their eyes, as opposed to a greedy bastard for keeping it. Even if the onus is on them, someone will likely resent you for not saying anything once they figure it out. If that person has to make a decision down the line about your career, that could be an issue. On the other hand, having a mark in your favor for saying something could be a good thing.
posted by GJSchaller at 8:23 PM on January 6, 2010
posted by GJSchaller at 8:23 PM on January 6, 2010
I would not tell them, "I am getting overpaid" You do not know that yet. I would ask them to explain how to calculate the proper amount and what is included in the calculation. Then if they still had it wrong, I would tell them that your calculation is not the same as theirs and ask them to recheck it or show them your calculation and ask them where it is wrong. I would also cash the check you have in hand. Just be prepared to return the extra amount after your discussion.
posted by JohnnyGunn at 8:26 PM on January 6, 2010
posted by JohnnyGunn at 8:26 PM on January 6, 2010
no no you are not being overpaid. The first check is generally larger because it includes what is called the "10 day waiting period." The "10 day waiting period" has to do with "waiting" to see if your injury is truly one that will result in time off of work. Many injuries don't go past 10 days. In order to qualify for the loss of wages compensation your injury must go beyond 10 days and be authorized by a physician. After the first payment your payments will be 66% of your wages.
posted by naplesyellow at 8:51 PM on January 6, 2010
posted by naplesyellow at 8:51 PM on January 6, 2010
If you call/bring it in and they say it is the correct amount, document date, time and who you talked with.
posted by edgeways at 8:57 PM on January 6, 2010
posted by edgeways at 8:57 PM on January 6, 2010
I'd tell them; you will be out of pocket at some point because of this, might as well be when you know it will happen.
If you are in the UK when they do ask for it back they will ask you to pay the gross amount (the amount they actually paid you before NI and tax was taken out). This is how much they lost and is how much they want back.
In the UK, even though it is all automatic, we are still responsible for our tax and NI payments. So if you do need to pay back the gross you will have to go through a very long winded process of claiming your tax and NI back.
posted by Nufkin at 4:27 AM on January 7, 2010
If you are in the UK when they do ask for it back they will ask you to pay the gross amount (the amount they actually paid you before NI and tax was taken out). This is how much they lost and is how much they want back.
In the UK, even though it is all automatic, we are still responsible for our tax and NI payments. So if you do need to pay back the gross you will have to go through a very long winded process of claiming your tax and NI back.
posted by Nufkin at 4:27 AM on January 7, 2010
They will find out, and they will deduct it from your regular pay. Trust me I know.
posted by Gungho at 7:37 AM on January 7, 2010
posted by Gungho at 7:37 AM on January 7, 2010
Hi. Kentucky HR person here. I handle workers compensation issues regularly.
As others have said, it's possible you haven't been overpaid. Naplesyellow is close, but doesn't have it quite right. In KY, our waiting period is actually 7 calendar days, meaning you aren't paid for the first 7 days you're off work. If you end up being out longer than 14 calendar days, though, work comp will retroactively pay you for your waiting period. So, since this is your first check, it's possible it includes payment for your waiting period.
I'd definitely call, and I'm not just saying that because I'm in HR. You do not want to commit WC fraud. It's an expensive mistake.
posted by pecanpies at 3:26 PM on January 7, 2010
As others have said, it's possible you haven't been overpaid. Naplesyellow is close, but doesn't have it quite right. In KY, our waiting period is actually 7 calendar days, meaning you aren't paid for the first 7 days you're off work. If you end up being out longer than 14 calendar days, though, work comp will retroactively pay you for your waiting period. So, since this is your first check, it's possible it includes payment for your waiting period.
I'd definitely call, and I'm not just saying that because I'm in HR. You do not want to commit WC fraud. It's an expensive mistake.
posted by pecanpies at 3:26 PM on January 7, 2010
This thread is closed to new comments.
Tell them they are paying you too much.
posted by dfriedman at 3:55 PM on January 6, 2010 [2 favorites]