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Over payment California

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  • Over payment California

    Hello.

    My company overpaid some employees last pay period, 5/28/12. They sent a memo to the managers regarding the overpayments today. This is what was said "Please inform the couriers their holiday payment was miss calculated and it will deduct on their pay check date 06/21/2012"

    Is there any law in regards to over payments to employees?

    Thank you.

  • #2
    From the CA-DLSE manual.

    10.5.1
    Section 221 Prevents Employer From Recovering Wages Paid To Employee. By enacting section 2 21, and retaining it as interpreted by the courts and the IWC, the Legislature has prohibited employers from using self-help to take back any part of “wages theretofore paid” to the employee, except in narrowly-defined circumstances provided by statute. This is consistent with the ruling in the case of CSEA v. State of California(1988) 198 Cal.App.3d 374; 243 Cal.Rptr. 60 2, which held that absent a contrary provision in the law, the attachment and garnishment laws in California prohibit an employer from recovering any wages previously paid to the employee.
    That is the good news. The bad news is that the laws does not say that the employer cannot recovery a legitimate overpayment, just that they can grab money without a court order.

    This is a uniquely CA rule.
    Last edited by DAW; 06-21-2012, 05:59 AM.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Thanks DAW.

      Comment

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