OT errors

Frenchie · September 2005

Is it a violation of Wage and Hour to recover an overpayment of overtime by not paying future overtime until the overage is corrected?

Geno · September 2005

Frenchie,

I believe that you will be in compliance if you "pay" the employee the earned overtime and then deduct the overpayment.

Geno

Frenchie · September 2005

Geno,
By that do you mean we must show the pay going in and then back out on the same pay?

Geno · September 2005

"show the pay going in and then back out on the same pay?"

Yes, show the legitimate overtime that was earned in the most recent pay period being paid under gross income and then make the deduction of your previous overpayment. You are paying the overtime as the FLSA requires -- nothing says that it is protected from deductions.

If the employe has already acknowledged the overpayment, you will be fine.

If you foresee the employee challenging the deduction, then you had better have a discussion with the employee prior to payday and then take marc's advice and document (in addition to the check stub information) the transaction.

Geno

marc · September 2005

That would be a good idea. It would also be smart to get a note signed by the overpaid EE that acknowledges the overpayment and the repayment schedule. Some would say that is an over reaction, but I like the theory that anytime you change anything about an EEs check, especially deductions, that you should have it in writing in the personnel file.

Call it an overabundance of caution.

Frenchie · October 2005

Thanks everyone. We are going to implement your suggestions.

OT errors

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