Employer overpaid- now wants money back by end of year

[lakewoodgirl]

What is the name of your state (only U.S. law)? AL
Back in April, my husband cashed in his 2010 vacation time due to the cost of having major repairs done to his personal vehicle. . This regular earnings and vacation time check arrived but then the next week, he also got the same amount - he wasn't sure if they broke the 2 weeks apart on 2 different paychecks and unfortunately thought it was legit. Yes, in hindsight, he should have double checked to make sure, but he didn't.

He was contacted by payroll months later and informed of the mistake on their end. Now they are making him pay it back through 10 hours of his regular paycheck every 2 weeks so as to have it all paid back by year's end.

Can they do this**************... set the schedule of payback because of their mistake?

Thanks for any insight you can provide- and believe me, we've learned our lesson about verifying even when we think we are right.

 

[justalayman]

Can they do this**************... set the schedule of payback because of their mistake?

maybe it's just me but the reason they want payments isn't because of their mistake but your husbands mistake when he cashed the checks.

This regular earnings and vacation time check arrived but then the next week, he also got the same amount - he wasn't sure if they broke the 2 weeks apart on 2 different paychecks and unfortunately thought it was legit

he doesn't know how much he earns or how much vacation time he was being paid for?

I cannot find anything the specifically disallows it without explicit permission by the employee (most states do have such laws in place). Does the deduction cause his effective earnings to be less than minimum wage?


and of course, the employer is entitled to the money now and your state is an employment at will state.

sometimes the realization that they allowing your husband to make payments and not simply firing him gives the person reason to agree to the payments.

 

[swalsh411]

From an administrative standpoint, recovery of overpayments becomes much more involved when it crosses years. You should be thankful the employer is allowing you a payment plan as opposed to taking it out all at once. (which, legal or not, is what a lot of employers would do)

 

[davidmcbeth3]

What is the name of your state (only U.S. law)? AL
Back in April, my husband cashed in his 2010 vacation time due to the cost of having major repairs done to his personal vehicle. . This regular earnings and vacation time check arrived but then the next week, he also got the same amount - he wasn't sure if they broke the 2 weeks apart on 2 different paychecks and unfortunately thought it was legit. Yes, in hindsight, he should have double checked to make sure, but he didn't.

He was contacted by payroll months later and informed of the mistake on their end. Now they are making him pay it back through 10 hours of his regular paycheck every 2 weeks so as to have it all paid back by year's end.

Can they do this**************... set the schedule of payback because of their mistake?

Thanks for any insight you can provide- and believe me, we've learned our lesson about verifying even when we think we are right.

You dont have to apologize for missing their mistake - if you dont like the payment plan, pay it off in a lump sum.

 

[pattytx]

A couple points of clarification needed.

Are they reducing his hours worked by 10? If so, if you take his GROSS pay actually paid and divide it by the hours actually WORKED, does the number still equal or exceed minimum wage?

And if he works overtime, are they increasing the hours they deduct?

 

[lakewoodgirl]

payback

With it being near the holidays, I was hoping he could pay it back $50 per check or even $100 per check (bi-weekly).

Pattytx:
They are reducing the hours reflected on his paycheck--so instead of working the 80 hrs biweekly, it's 70 hrs biweekly. Yes, it would be more than minimum wage. Not sure about the OT part- will need to check with him because he has worked OT over the last month.

Thanks everyone!

 

[pattytx]

OK, please do, because federal law (which is the only existing law that applies in your state) requires that both MW and overtime pay be received "free and clear".