Company claims overpayment?

[andyrew2011]

What is the name of your state (only U.S. law)? Kansas

So, my company sent out an email stating that they were switching my salary pay (24 pay periods) to bi-weekly pay (26 pay periods), and giving me an extra check (think of it like a small bonus) to cover the smaller payments for a few months. In the email it specifically states in two different places the pay I was to receive on April 15th, and then from then on through the end of the year.

On April 15th, I received the ammount they stated they would pay me (again in 2 different places in the email).

Now, May 17th, they claim they overpaid me 4 days, and they want to take that money back on a future paycheck.

My question is, can they take the money back after they stated they were paying me that much?

 

[OHRoadwarrior]

Without knowing the numbers, it is hard to determine whether it was an overpayment or an error. Ultimately do you want to compromise your job over 4 days pay? If it is a shortage, they will understand you raising the issue. If it is a bonus or error, they may get upset.

 

[andyrew2011]

error

It was an error on their part, (or at least that's how our payroll department is explaining it to me).

However, if for example my salary is 50,000 a year, my gross for this year will now only be 48,000, because of them changing me to bi-weekly in the middle of the year. They claim...."well, you'll make it back up next year", but when I calculate my salary for next year, it is still the 50,000, not 52,000 like I would think it would be.

They claimed the switch from semi-monthly to bi-weekly had a 4 day overlap they that failed to account for. Again, they stated in their email twice how they were going to pay, and what it was for, and then did pay that ammount.

 

[OHRoadwarrior]

I would take the actual numbers and lay it out for them as you just did. It is hard to tell you one thing to your face when the numbers are sitting there proving them wrong. If they deny you, be polite and go over their head.

 

[andyrew2011]

After reviewing things yet again, if my negotiated salary is for example the 50,000/year stated above, I should be able to expect that compensation within 1 years timeframe. The superior stated that I would have "earned" or "worked for" 50,000/year, however I would not be receiving that within a years timeframe because of the way bi-weekly payrolls worked. They stated they are paid 6 days off.

He then went on to say that if i worked in between payrolls, and quit halfway through, I would still receive a check for the balance a week later, and that would catch me up to my full salary that I will be out this year. I posed the question, "What if I quit at the end of a pay period?" How would I catch up then? He didn't have an answer.

Here is a quote from the email I originally received:

This change does NOT affect the total wage that anyone receives over a 12 month period, but only the way in which the wage is paid.

 

[andyrew2011]

Long and Short of it:

They claim when the way I was paid at the start of 2011, it was not in "Rears" for my salary pay on the 15th and 30th of every month.

Now with the new switch over, they claim they have put a 6 days "Rears" policy in place, and my "earnings" over 2011 will be my total salary example of 50,000, however, my "pay" over 2011 will be lower, because of the last two weeks of December being paid out in January 2012.

Regardless of their symantecs, no matter how may pay periods I have over the course of 2011 (be it 24 or 25 or 26), I should receive my salary in pay in full correct?

 

[cbg]

It's "arrears", not "rears".

They are not obligated to compound an error. And it's rare indeed that the exact amount paid over the course of a year is exactly the "annual salary" listed in an offer letter. No matter how you slice it, there are always a few days that fall from one calendar year into another. If your expectation is that your end of year pay amount is going to exactly match the amount in your offer letter, then I suggest you adjust your expectations.

 

[andyrew2011]

It's "arrears", not "rears".

Thank you for the correction, I wasn't sure what he was saying.

They are not obligated to compound an error. And it's rare indeed that the exact amount paid over the course of a year is exactly the "annual salary" listed in an offer letter. No matter how you slice it, there are always a few days that fall from one calendar year into another.

Actually, my pay over the course of a year for my salary has been EXACTLY what they said it would be. That is why this is confusing for me. What you stated here was not of any help to me to be honest. If my salary is the 50,000 example, and I'm paid over 24 pay periods, then each pay period I would receive 1/24th of my 50,000. Being paid on the 15th, and 30th of each month would ensure that happens.

If your expectation is that your end of year pay amount is going to exactly match the amount in your offer letter, then I suggest you adjust your expectations.

This is just rediculous that you would state this. If this is how people talk on this website it's time to find a new website. I'm here to find help, not someone who can't be courteous.

 

[Zigner]

Thank you for the correction, I wasn't sure what he was saying.



Actually, my pay over the course of a year for my salary has been EXACTLY what they said it would be. That is why this is confusing for me. What you stated here was not of any help to me to be honest. If my salary is the 50,000 example, and I'm paid over 24 pay periods, then each pay period I would receive 1/24th of my 50,000. Being paid on the 15th, and 30th of each month would ensure that happens.



This is just rediculous that you would state this. If this is how people talk on this website it's time to find a new website. I'm here to find help, not someone who can't be courteous.

And with that, we bid you farewell. Good luck!

 

[swalsh411]

First of all from a legal standpoint "salary" is what you are paid every week not every year. So in that sense "annual salary" is an oxymoron.

Secondly, it is very possible for your actual pay to differ from the annual amount in the offer letter if you are paid every two weeks because some years will have 26 pays and some will have 27. Contrast this to being paid twice a month where there will always be 24 pay dates every single year no exceptions.

Take the annual salary in your offer letter and divide by 52. If you are receiving that much in pay per week (regardless of how the pay periods may fall or when the actual pay date is) then you are being paid correctly. Or if you want to get really nitty gritty about it, take the annual amount divided by 2080 times 40. That would be your weekly salary.