Is it legal to mistakenly overpay an employee on one paycheck, then correct it by taking money out of their next paycheck without telling them?

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Is it legal to mistakenly overpay an employee on one paycheck, then correct it by taking money out of their next paycheck without telling them?

I was told today that I did not get paid for the pay period 6/1-6/15 which had 16 hours on it because I was overpaid the previous pay period. I was told they made a mistake and paid me two vacation days and two personal days instead of one each on my last paycheck. To rectify the situation it was decided to take my next paycheck without my knowledge or permission. Is this legal?

Asked on June 26, 2019 under Employment Labor Law, Texas

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

Federal wage law gives employers quite a bit of discretion to make deductions for accidental overpayments to employees. Under the law, employers can deduct the full amount of overpayments to workers, even if doing so would bring the employee’s wages below minimum wage for the pay period. Further, an employer can do this without first getting consent from the employee or even providing them notice beforehand. Some states do require prior notice. To be certain of the law in TX, you can contact the state depaetment of labor for further information.


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