The employer may have to pay additional amounts if it is specified in the agreement that the salary is meant to compensate for up to 45 hours. In New York, for example, you can collect overpayments up to 8 weeks prior to notification to an employee that there was a problem and you have a maximum of 6 years to do so. After receiving the advance pay, the employee resigns. Wage Overpayment Recoupment: State Laws Vary And its important to have a plan in place to avoid a hit to employee morale and noncompliance with any applicable federal and state laws. It is good practice to have an employees written permission prior to making deductions in any case. Overpayments caused by intentional program violations. It is always good practice to start by attempting to negotiate terms of repayment directly with the employee or former employee. If the employer has a sick pay policy, but the employee is not eligible for benefits under the policy for the first 90 days of employment, the employer may deduct for full days of absence due to illness during that first 90-day period. An employer may not adjust the T4, payroll records or total employment income by the amount of the repayment it should always include the amount of the salary overpayment and any deductions made on the employees T4 slip. Although BOLI will not pursue employee wage claims where a recoupment is involved, an employee whose check has been adjusted to account for an overpayment may nevertheless take action in court. Persons filing a claim for wages must do so online or by printing the Labor Standards Complaint form and mailing it to our office. Thus, employers should consult with an experienced wage-and-hour attorney or state agency to get clear guidance prior to proceeding with an overpayment recoupment. 40.1-29; Virginia Department of Labor and Industry, Field Operations Manual, Ch. Other states have statutes or regulations that have been interpreted to prohibit overpayment recoupment through paycheck adjustment. Consider an employee who requests and is approved for advance vacation pay before they have actually earned it. If the employer refuses to pay wages earned on the regularly established payday, the employee should request payment. The Lost Wages Assistance (LWA) program, authorized by the Presidential Memorandum, provided eligible claimants a supplemental payment of $300 per week, for up to six weeks, in addition to their weekly unemployment benefit amount.The LWA program expired on Saturday, December 26, 2020. Recovery of Overpaid Benefits- State Employers Only How ETF works with state employers to recover overpayments Benefits are overpaid for many reasons (late notice of death, other income is received while receiving disability benefits, etc.).