Repayment of Severance

[Guest dmlwilliams]

I have an issue and could use some advice, I am new to this board. I have a small business client who cut all salaries for all employees by 20% on May 31. He stopped paying commissions, and cut auto allowances by 20%. On June 30 he laid off an EE, gave her a severance package that paid her the commissions from the end of May, made up the missing salary, paid her regular salary for July, made up the missing auto allowance and paid her COBRA costs for 6 months. There was no signed release or agreement. Company rehired EE in July and wants the money back. EE only wants to pay back the COBRA money and is saying that she was owed all the monies that she received. Does the ER have any rights to get the money back since there was no release and no rehire agreement? Thank you for any help that any of you can provide.