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Statute of limitations: repayment of payroll error Nevada

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  • Statute of limitations: repayment of payroll error Nevada

    I was given a sizable bonus in July. I questioned if I were rightfully due the bonus as I had left the bonus-eligible department months earlier, and was told that HR would look into the matter.

    I heard nothing further until last week. They finally questioned the appropriate director and VP, and found I was not due this bonus. My company is requesting repayment over the next 6 paychecks.

    Washington State Law states that an employer has 90 from being made aware of a payroll overpayment to request repayment. Is their a similar statute in Nevada?

    (Actually, let me back up - I work in Nevada, but my division is a wholly owned subsidiary of a foreign company. My division's corporate offices are in California, but the head company's US office in in Georgia. **Do Nevada state laws apply in this case?** Last year, I requested a copy of my personnel folder, and was told that they follow company policy, not NV state law, and I could only be given materials which I had signed.)
    Don't feed the trolls.

  • #2
    Do Nevada state laws apply in this case? Yes. The State laws where the employee works are the applicable set of laws. Nevada requires that both public and private sector employers give an employee a "reasonable opportunity" to inspect his/her personnel records upon request of the employee. The only items exempt from inspection are confidential reports from previous employers or investigative agencies (i.e. references and background checks) or information concerning an investigation, arrest, or a conviction of that employee for a violation of the law. If your employer elects to follow company policy and disregard the applicable State laws, they're heading for a world of hurt.

    Regarding your bonus question, I'm afraid I can't answer that. You might want to call Nevada's Department of Labor and inquire. (And while you're on the phone, you can file a complaint for their refusal to let you view your personnel file if you wish to.)


    • #3
      Just to clarify, the WA state law only governs when the repayment may be taken from future checks. The law does not say that employees are entitled to keep the overpayment if the error is not caught within 90 days. HUGE difference.

      It is legal in every state to request repayment of a bonus paid in error. Your employer does need your authorization to take it from future checks.
      I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.


      • #4
        Thank you for pointing out my misunderstanding of Washington state law. In the website, I thought the paragraph below was applicable to my circumstance: (moot point legally, since I don't live in WA, but helpful should I choose to argue further with my company...)

        (4) An employer can recover an overpayment from an employee's paycheck provided the overpayment was infrequent and inadvertent. Infrequent means rarely, not occurring regularly, or not showing a pattern. Inadvertent means an error that was accidental, unintentional, or not deliberately done. The burden of proving the inadvertent error rests with the employer who made the error. The employer has ninety days from the initial overpayment to detect and implement a plan with the employee to collect the overpayment. If the overpayment is not detected within the ninety-day period, the employer cannot adjust an employee's current or future wages to recoup the overpayment. Recouping of overpayments is limited to the ninety-day detection period.
        Don't feed the trolls.