Common use of Overpayment of Wages Clause in Contracts

Overpayment of Wages. As soon as the district recognizes an overpayment of wages and/or benefits to which the employee is not entitled, regardless of whether the employee knew or should have known of the overpayment, the district shall notify the employee in writing (email) of the overpayment and the amount of wages and/or benefits to be repaid. For purposes of recovering overpayments by payroll deduction, the following shall apply: (A) The district shall be limited in using the payroll deduction process for recoupment of overpayment of wages and/or benefits that occurred no more than three (3) years before the notification. (B) The employee and the district shall meet and attempt to reach mutual agreement on a repayment schedule within thirty (30) calendar days following written notification (email). (C) If there is no mutual agreement at the end of the thirty (30) day calendar period the district shall implement the repayment schedule stated in Section (D) of this Article. (D) If the overpayment amount to be repaid is more than five percent (5%) of the employee’s regular monthly base salary, the overpayment shall be recovered in monthly amounts not exceeding five percent (5%) of the employee’s base salary. If an overpayment is less than five percent (5%) of the employee’s regular monthly salary base, the overpayment shall be recovered in a lump sum deduction from the employee’s next paycheck. If an employee leaves district employment before the district fully recovers the overpayment, the remaining amount may be deducted from the employee’s final check(s). (E) Notwithstanding the above, Section (B), (C), and (D) of this Article shall not apply to payroll adjustments necessitated by a discrepancy between actual hours of paid time versus hours projected for payroll purposes from one pay period to another. For example, if an employee utilizes leave without pay near the end of a month but is paid for such time because leave without pay was not anticipated at the payroll cutoff date for that month, the employee’s pay and benefit entitlements may be adjusted on the following month’s paycheck. (F) An employee who disagrees with the district determination that an overpayment has been made to the employee may dispute the determination in writing to the Superintendent within thirty (30) calendar days as stated in Section (B) of this Article. (G) Nothing in this article shall preclude a mutual agreement between the parties for immediate restitution (repayment). (H) This Section does not waive the district’s right to pursue other legal procedures and processes to recoup an overpayment of wages made to an employee at any time.