Salary overpayment

[vey]

What is the name of your state? Arizona

I was switched from a salaried employee to hourly back in January 2004. My hourly rate seemed higher than expected so I notified payroll and my supervisor. They said they looked into and the rate was correct. My company recently merged and is under an additional payroll department. They said they noticed a discrepancy and I was overpaid by $14000. They said that they would forgive th 14K if I agree to payback any benefits received (about 4000 in paid time-off). I feel that I am penalized for something that is not my fault since I notified the appropriate parties in a timely fashion. My rate was re-adjusted to the lower rate plus they want to start deducting the 4K. So, I've had to take a paycut and pay money back.

 

[SuzieWahoozie]

Answer

Unfortunately, nothing your employer has done is illegal as far as I can see. Whether you were overpaid due to their mistake or not, the money isn't yours and you have to give it back. Forgiving $10k of the "debt" is generous.

However, I can appreciate how badly you must feel since you did attempt to do the right thing. Do you have any proof of that (e-mails, memos, voicemails, etc.)? If so, perhaps you can further plead your case by showing them you did try to rectify the situation previously. Not that they have to change their minds about making you repay anything (I suspect their generosity in forgiving $10k of the overpayment is already their way of atoning for their mistake), but at least you will come to be known as a person of integrity.

As for the cut in pay and the repayment. You're going to have to repay the money even if you quit your job, but quitting and going to work elsewhere is an option if you need to make more money.

 

[Dandy Don]

Get their payback offer in writing, if you can, so that you won't be further penalized in the future if they decide to take out the other $10K.