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Jul13

Overpayment

We (the employer) had a small glitch in our payroll system and overpaid someone a $1 extra per hour for one payroll cycle. Are we allowed to get this overpayment back from the employee? The state is California. If no, where would I be able to find this in writing somewhere on the web? Thanks!

This is an illegal deduction in California. Many other states permit an employer to recover an accidental overpayment of wages, but California does not. Specifically, CSEA v. State of California found that the employer could not recover wages paid in advance, even when that was due to a payroll error.

Read more about this at: http://www.dir.ca.gov/dlse/FAQ_Deductions.htm

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This entry was posted on Tuesday, July 13th, 2010 at 12:00 pm and is filed under
Compensation, Human Resources Management.
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