HR Chat: Wage Overpayment

You run a business that pays employees via direct deposit. After processing payroll for the pay period, you discover that one of your hourly employees was paid for 12 extra hours beyond what they actually worked. To correct the mistake, you ask the employee to return the overpayment, but they refuse, arguing that it wasn’t their error. Unsure of your legal rights in this situation, you’re wondering if you can legally deduct the overpaid amount from the employee’s next paycheck, or what other actions you can take to resolve this.

Dealing with payroll errors can definitely be stressful for employers, especially when the legal implications of wage deductions or mistakes aren’t clear. With a subscription to myHRcounsel, you can have direct access to experienced attorneys who specialize in employment law. This means you’ll get the guidance you need to navigate tricky payroll issues and ensure you’re handling everything correctly, according to the law.