overpaid employee

GLC

We have an ee (exempt)who was pregnant last year. After the baby was born, she went PT. We just found out that Finance did not adjust her FT salary to reflect the PT hours. Since the baby was born, she has still been getting paid for 40 hours per week when she should have been paid for 30 hours, her new PT hours. She was overpaid by $6,000. She questioned her salary to our Accounting person because it was very close to her FT salary. The accounting person, who was fired last year for numerous mistakes, told her it was correct because the salary reflected a recent annual raise and because she had received her master's degree. She was told that her salary would be adjusted to reflect her new permanent PT work schedule. The ee does not feel she should repay us since it was our fault. She knew she could not continue to work 30 hours and get paid for a salary based on 40 hours per week. I would have every exempt ee in my office if they could do that. I would even sign up for that deal. Can we legally ask her to repay? We can set her up on a payment plan. I understand the rules for exempt employees that they have to be paid the same amount. To me, this is different because her hours changed permanently and she was told their would be a salary differential.

TN HR

Hmm...I think a lot of this will ultimately depend on the laws of your State. How was the reduction in salary documented? You cannot simply go by the assumption that since she was taking a reduction in hours she would also take a reduction in salary. She could argue that the scope of the job changed.

Gene

Balloonman1

Remember just like you give raises, you can reduce salaries. Since a mistake was made on your end you owe it to her to work with her on the salary repayment. If she squawks to much you could change her salary down as you see fit as the employer. Yes I know morale issues blah, blah, blah........ sorry a mistake was made but it was identified and we have to correct it. Be prepared to let her go or that she may quit.

My $0.02 worth........

The Balloonman

LivindonSouth

[font size="1" color="#FF0000"]LAST EDITED ON 09-21-05 AT 03:27PM (CST)[/font][br][br]You've got eleven responses to this question over on the Wage/Hour board.

But, I notice you've got some entirely different wrinkles in each. Before you do anything at all, all the facts better be straight.