How can we recover funds accidentally overpaid to an employee? — 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 recover funds accidentally overpaid to an employee?

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Q. We recently overpaid an employee by $3,000, but we did not discover the discrepancy for six months. Can we automatically and legitimately withhold those wages from the employee’s paycheck? Also, would it be inappropriate to dock additional wages because the employee did not make us aware of the mistake?

A. You should have written authorization from the employee to withhold this amount from his or her wages. You may take disciplinary action against the employee, if appropriate, but do not dock additional wages.

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