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We had an employee that was a sales rep. We gave him a Co. phone that had a time clock software program installed and had GPS. We started monitoring him as he was not bringing in the sales, come to find out he was working for another company. Yet, clocking in on our time. We are going to file a small claims suit. My question is do I have to Send a request letter prior to doing so. Seems like a waste of time as he will just deny it. And apparently had no idea we had GPS on it. Yet, he signed our monitoring agreement….

Most, if not all, states require notice to be provided of the attempt to recoup an overpayment. Regardless of the law in your state, it’s in your best interest to notify the employee of the overpaid wages and request the money be returned. It’s advisable to send an initial letter with a payment deadline. If the employee refuses to pay back the money, then send a follow up letter informing him of your intent to recoup the overpaid wages in court.

More importantly, be sure you have concrete evidence supporting your claim that the employee did absolutely no work during the paid hours that you’re attempting to recoup. Keep in mind that the Fair Labor Standards Act (FLSA), which enforces compensation guidelines, requires non-exempt employees be paid for all hours worked. It’s the employer’s responsibility to ensure that all hours worked are compensated; thus, without absolute certainty of the time falsification the employee must be paid for the hours he claims to have worked. Additionally, the FLSA requires exempt employees to be paid their full predetermined salary for a week during which any work is performed. Again, it’s important to have clear evidence for all the time you’re attempting to recoup overpaid wages.

This entry was posted on Friday, October 10th, 2014 at 7:14 pm and is filed under
Human Resources Management.
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