What if We Accidentally Overpaid an Employee?
January 28, 2015
by
Paul Sullivan
Category:
Compensation
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The state constitution at article 8, section 7 prohibits gifts of public funds, and, if I was paid more than my salary provided for, the extra pay would be considered a gift of public funds, if not recovered. So, if an employee is accidently overpaid, what should happen?
RCW 49.48.200 provides that a debt due to the state, a county, or a city because of overpayment of wages can be recovered by a civil action of by the process set out in RCW 49.48.210. Under that process, the government employer must first provide the employee with written notice that includes the amount of the overpayment, the basis for the claim, a demand for repayment within 20 days of the receipt of the notice, and the employee's rights under the statute. The statute also sets out a detailed procedure for the employee to challenge the overpayment claim. If the employee is covered by a collective bargaining agreement, any overpayment is to be handled through the grievance procedures set out in the collective bargaining agreement.
RCW 49.48.200 also provides that, if recovery of the overpayment is by deduction from future wages, the deductions cannot exceed five percent of the employee's disposable earnings in any pay period, other than for the final pay period. For the final pay period, the employer may withhold the amount then still outstanding from the employee's disposable earnings. The deductions from wages continue until the overpayment is fully recovered. Alternatively, the employee can make payments in excess of five percent or the employer and employee may agree to a different amount or to a method other than deduction from wages.
The city recovered the overpayment from me and all was well again. But, c’mon, overpaid? I don’t think so.
If you have questions regarding the overpayment of wages or other similar issues, contact MRSC and/or discuss your issue with your agency’s legal counsel.
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