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MN - overpayment and decreasing wages

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  • MN - overpayment and decreasing wages

    A handfull of employees were being overpaid by $2/hour for a brief period of time. A communication was made (after notifying them of the error and giving them two weeks to come up with other suggestions, ideas, etc) that the future paychecks would be reduced to the correct, $8/hour, rate. While the next paycheck reflected the reduction, the corresponding hours for that pay period had been worked prior to the communication regarding the wage reduction (i.e. those hours were worked under the premise of earning the incorrect, higher amount) Legal or illegal?

  • #2
    Tough call. But if illegal, it's only going to be illegal because of a state law requiring prior notification. If the employees were truly overpaid, they can be required to repay the overage. And to be perfectly honest, I suspect the answer is going to be, legal, since it appears that prior notification was given.

    Check with the MN DOL.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


    • #3
      Thank you.


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