Overpayment Recovery Policy

Payroll overpayments will be recovered from employees either by payroll deduction or personal check. The recovery period will be as short as one payment cycle but will extend no longer than two months. Overpayments in excess of an employee’s normal period salary will be determined on a case by case basis by payroll, the department administrator and the employee. Funds recovered will be credited on the payroll cycle following recovery.

 

Discovery & Repayment

Payroll overpayments will be recovered from employees either by personal check (preferred) or payroll deduction. If it is by payroll deduction, the recovery period will be as short as one payment cycle but will extend no longer than two months.

 

Discovered BEFORE Next Scheduled Payment

If the overpayment is discovered before the issuance of the employee’s next scheduled payment, the entire amount will be recovered on that next cycle.

• This can be accomplished either by docking pay via FFE or other time entry system or by payroll deduction. The department administrator will communicate the recovery process to the employee.
• If the recovery is for the employee’s entire pay, do not AWOP the employee in FFE. Complete the Overpayment Recovery Form and send it to Payroll. Payroll will ensure that required Benefits deductions are withheld before recovering the overpayment.

 

Discovered AFTER Next Scheduled Payment

If the overpayment is discovered after the issuance of the employee’s next scheduled payment, complete the Overpayment Recovery Form and the overpayment will be recovered over a period of two months unless the employee voluntarily returns the overpayment via personal check.

Through payroll deduction:

• Weekly employees will repay over 8 checks
• Bi-weekly employees will repay over 4 checks
• Monthly employees will repay over 2 checks

Payroll will communicate the overpayment process with both the employee and the department administrator.
Overpayments in excess of an employee’s normal period salary will be determined on a case by case basis by payroll, the department administrator and the employee.

 

Terminated Employees

Overpayment to terminated employees will be initiated by payroll via form letter to both the employee and the departmental administrator. Non-payment after 3 letters will be escalated to the appropriate authority for follow-up and legal action if necessary.