How can we recoup money we overpaid worker? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

How can we recoup money we overpaid worker?

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in Office Management,Payroll Management

Q. We pay most of our employees’ wages and salaries via direct deposit. Last week, two checks for the same pay period were deposited into an employee’s account. Can we legally have the bank withdraw the extra funds from the employee’s account?

A. Once the funds are deposited into the employee’s account, you no longer have control over them. The most prudent approach would be to ask the employee to either:

  • Refund the money
  • Consent in writing to have the amount deducted from future earnings.

If the employee refuses, you could take disciplinary action or sue to reclaim the overpaid wages.

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