HR Chat: Payroll Mistake

After your most recent payroll, you discovered that an employee was paid for more hours than they actually worked. You now want to correct the mistake but aren’t sure what steps you can take as an employer. Should you reach an agreement with the employee to repay the overpaid amount, allow them to keep it, or deduct the overpayment from their next paycheck?

Situations like this can quickly create compliance challenges if not handled correctly. Before taking action, employers may want to consult with myHRcounsel’s attorneys to ensure they choose the best approach for both their organization and the employee.