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Huge overpayment of wages - California

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  • Huge overpayment of wages - California

    My wife recently found out that her employer has been overpaying her for almost two years. It turns out that when she went back to work after maternity leave they failed to discontinue her comapanies disability payments. It amounts to a huge figure, which we have negotiated down $30,000. While this is a huge error on their part, and should have been caught in audits, she should have caught it too. Money is not her thing, and as long as she isnt bouncing checks, she doesnt pay much attention to it. We have separate finances, so I didnt notice it either. We have been given a promissory note to repay the amount via payroll deduction over the next several years.

    I have read the DLSE letter in http://www.dir.ca.gov/dlse/opinions/1999-09-22-1.pdf and understand that the employer can only recover this funds via payroll decuction with her approval, and we approve.

    My question is this: what happens if she is terminated? Would it be appropriate to ask the employer to include a clause that would essentially forgive this debt should she be terminated. She is a model employee and top performer and will probably retire from this company years down the road, but I am concerned should the company take a turn.

    What other advice might any of you have?

  • #2
    What happens if your wife's employment is terminated before the promissory note is completely paid back, is something that will have to be decided on/worked out between your wife & her employer.
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