Wage determination was wrong... repaying?

[smkat]

What is the name of your state? CO (HR and payroll are in FL though)

Back in October we all got a letter from HR stating that we may be getting more per hour, "Wage determination", based on our benefits selections. It said the max was $3.01 per hour, but may vary based on our benefit selections. It did NOT say if more insurance equaled less $$$, or vice versa. My letter said I was entitled to $2.99 per hour extra. I signed it and returned it to HR that same day.

Today I got a call from HR saying that they made a mistake and I was supposed to actually be getting nothing extra. She then went on to say that it was also MY mistake since I didn't tell them about the mistake. Well, uh, how was I supposed to know they made a mistake. They hadn't included a chart listing "If you take X benefits, you'll get paid Y extra", or anything like that... only said that "your wage determination may vary based on your selections".

So now I'm being told I have to repay over $1100 within the next 4 paychecks, plus, of course, I'll not be getting the extra that I'd been told orginally I'd be getting.

I'm a tad bit worried... we're barely making ends meet now. Can they legally make me repay their error? I don't believe that I'm at fault since we were never told HOW our selections effected our wages (more=less), just that they did. Am I liable to repay for their mistake? I can completely understand not receiving the extra wage from now on, but to make me repay THEIR mistake? ~sighs~ Is there anything I can do? (other than look for another job, which I already am)

Thanks ~smiles~

 

[moburkes]

I'm not sure what you are trying to describe, but if your employer accidentally paid you extra, they are allowed to correct their mistake.

 

[ecmst12]

It wasn't very nice of them to blame you for their mistake, but you don't get to keep money you're not entitled to just because they made a mistake.

 

[smkat]

I'm sorry, I may not have been clear. I'm just a tad bit worried right now.

My base pay is $11.07 per hour. We received a letter that said the government determined we were entitled to more per hour, based on our benefits selections, they called that "Wage Determination". The letter said that the maximum amount anyone would get was $3.01 per hour extra. It was typed in that I would receive $2.99 extra per hour, based on my benefits. We were told to sign the letter and return it. I had no reason to believe that they made an error. So, since October I've been receiving $11.07 per hour, plus $2.99 per hour as my "wage determination".

I guess I don't understand why, when it was their mistake only, I have to give back what they gave me. I signed the letter THEY sent stating that I would accept the "wage determination". Does that make a difference that this was in writing? I understand they made a mistake, and I accept not receiving the extra from here on out, but why am I liable for correcting their error when THEY were the ones that sent the letter? Is there a law/statute/something that says they are allowed to do that?

 

[ecmst12]

You don't get to keep money that you didn't earn just because your employer made a mistake. Period. People are all human and HR departments are allowed to make errors; you don't get to profit from that. Maybe they will let you repay over a longer period of time. Also make sure they are taking the payback from your PRE TAX wages.

 

[fairisfair]

I'm sorry, I may not have been clear. I'm just a tad bit worried right now.

My base pay is $11.07 per hour. We received a letter that said the government determined we were entitled to more per hour, based on our benefits selections, they called that "Wage Determination". The letter said that the maximum amount anyone would get was $3.01 per hour extra. It was typed in that I would receive $2.99 extra per hour, based on my benefits. We were told to sign the letter and return it. I had no reason to believe that they made an error. So, since October I've been receiving $11.07 per hour, plus $2.99 per hour as my "wage determination".

I guess I don't understand why, when it was their mistake only, I have to give back what they gave me. I signed the letter THEY sent stating that I would accept the "wage determination". Does that make a difference that this was in writing? I understand they made a mistake, and I accept not receiving the extra from here on out, but why am I liable for correcting their error when THEY were the ones that sent the letter? Is there a law/statute/something that says they are allowed to do that?

so your wage determination was to meet the government's determination of prevailing wage for your position with regard to the value of your benefits used in the calculation. Is that correct?

I personally would suggest that you contact these people:
http://www.coworkforce.com/contact.asp
If they cannot help you, then they should be able to direct you to someone who can.

There is probably no way you could have known that your pay should be different and it certainly seems unfair that you would be expected to repay the money in such a fashion.

 

[smkat]

Is there a law or something regarding this, or is it just something they *do*?

You don't get to keep money that you didn't earn just because your employer made a mistake. Period. People are all human and HR departments are allowed to make errors; you don't get to profit from that. Maybe they will let you repay over a longer period of time. Also make sure they are taking the payback from your PRE TAX wages.

I'm so clueless (I admit) about payroll/tax stuff... how does taking it from pre-tax wages make a difference?

Thanks for all your help... even if so far I'm not exactly hearing what I want ~smiles~ I do want to do the right thing... I just want to make sure they're legally doing the right thing as well.

 

[smkat]

so your wage determination was to meet the government's determination of prevailing wage for your position with regard to the value of your benefits used in the calculation. Is that correct?

I personally would suggest that you contact these people:
http://www.coworkforce.com/contact.asp
If they cannot help you, then they should be able to direct you to someone who can.

There is probably no way you could have known that your pay should be different and it certainly seems unfair that you would be expected to repay the money in such a fashion.

Yes, that's it exactly. I've emailed the site you linked... thank you for that ~smiles~

 

[ecmst12]

You want them to take it out pre-tax because you already paid taxes on it when they originally paid it to you. If they make you repay out of after-tax money, then you're essentially paying taxes on it twice.

 

[smkat]

You want them to take it out pre-tax because you already paid taxes on it when they originally paid it to you. If they make you repay out of after-tax money, then you're essentially paying taxes on it twice.

Ahh... that makes sense. I'm supposed to be talking to them again later about this, I'll bring that up and make sure they do that.

 

[fairisfair]

good luck. I am not familiar enough with the prevailing wage calculations to help you further. There are others on the board though that probably are very knowledgeable, but they may not be online now. I would continue to check the thread for additional information while you are awaiting a response from the other link.