Have you mistakenly overpaid your employee or a contractor who refuses to return that money? Did you sponsor higher education for your employee with a commitment to work with you for a few years, but he resigned right after completing the degree? Did they sign a contract stating they would pay back the training fees if they didn’t work for a specific duration? Other circumstances where an employee can owe money to his employer include overpaid salary, excessive travel expenses, misuse of company credit card, or excessive reimbursement claimed. With more employees working remotely, unreturned company equipment—like laptops—has become a growing issue for businesses.
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While federal guidelines provide a baseline, specific legal rules and limitations for recovering employee overages vary significantly from state to state.
The Velvet Hammer: A Specialized Recovery Mandate
Recovering capital from former staff requires a specialized touch. Our Account Reconciliation Team utilizes the “Velvet Hammer” approach: a firm, results-oriented methodology that remains reputation-safe and empathetic. We move your bill to the top of their priority list by creating a genuine “will to pay” before other creditors.
Our current fee structure is built for performance:
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Contingency Recovery: 40% fee—no recovery, no fee.
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Equipment/Instrument Return: We understand that returned equipment is often depreciated. If a laptop or specialized tool is recovered in lieu of cash, our contingency fee drops to 25%.
Expert Recommendations for Internal Resolution
Before escalating to our team, we suggest following these best practices to strengthen your recovery position:
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Document the Overpayment: Create a clear record of the overage, including the specific amount, the reason for the error, and any internal policies that were breached.
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Listen to the Employee’s Perspective: Allow them to share their side. There may be extenuating circumstances or information you are missing that could lead to an amicable internal settlement.
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Final Internal Communication: Send a formal, final notice outlining the outstanding debt and your intent to involve a third-party agency if not resolved by a specific date.
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Provide Full Documentation to Us: Once you assign the account, supply our team with all relevant contracts, emails, and policy agreements to ensure a swift, legally-grounded recovery.
Why Working with Debtors Wins
Arguing often leads to defensive stalls. We work with the debtor to find a path to payment, using a diplomatic style that protects your 5-star online reputation. We also perform a rigorous litigation scrub to protect you from attempting collection on high-risk or litigious individuals. Involvement of an agency significantly improves recovery rates—the earlier you assign the debt, the better the results.
Recent Success Stories
Scenario A: The Relocation Refund
A mid-level manager received a $5,000 relocation stipend but resigned within four months, violating their one-year stay agreement.
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Step 1: We utilized skip tracing to locate the former employee at their new firm.
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Step 2: Our bilingual collectors mediated a settlement, identifying a payroll error at the new company that was stalling the refund.
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Result: 100% of the principal was recovered via a structured two-payment plan.
Scenario B: The Unreturned Tech Suite
A remote contractor vanished with a company-issued high-end workstation and multiple peripherals.
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Step 1: We performed a USPS address check to verify their current residence.
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Step 2: We leveraged the 25% equipment return fee to incentivize the return of the hardware over a cash battle.
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Result: All equipment was returned in working order within 72 hours.
Compliance and Modern Logistics
We navigate the complexities of current federal rules to keep your business safe. Our toolkit includes USPS address checks, skip tracing, and bankruptcy scrubs. We offer credit reporting where permitted and requested. All calls are recorded and reviewed to prevent rogue collector behavior and protect against review-bombing risks. When appropriate, we use email and text to speed up response times.
Frequently Asked Questions
Can we just take the money from their final paycheck?
Federal laws (FLSA) are very strict regarding final check deductions. If a deduction brings an employee below the minimum wage, you could face heavy penalties. Professional collection is often the safer legal route.
What if the former employee speaks Spanish?
We have professional Spanish-speaking collectors on board. This ensures clear, respectful communication and a higher likelihood of recovery without misunderstandings.
Does this service apply to contractors too?
Yes. Whether it’s a 1099 contractor or a W2 employee, our strategies for recovering overpayments and unreturned equipment remain highly effective.
Why should I use an agency instead of my HR team?
HR teams are built for culture and growth, not collections. Forcing them into an adversarial role can damage morale and distract them from their core functions.
How do you handle an unreturned company laptop from an ex-employee?
We’ll formally instruct the ex-employee to return the laptop immediately—or reimburse the full replacement cost if they don’t. Our preference is always to recover the actual device, since it may contain important business information. Other items for which you can put a claim include company provided Monitors, Docking station, Company phone, Printer, Hard drives, Ergonomic chair, etc.
Can an ex-employee be prosecuted or fined for misusing an unreturned laptop with company proprietary information?
Yes—misuse or theft of company proprietary data can expose an ex-employee to serious civil liability and even criminal charges in some cases, depending on what was accessed and how it was used. However, if you want to pursue legal action, you should consult an attorney—not a collection agency—to evaluate your options and next steps.
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