Can a company take back money if they overpaid you?

Yup. Both state and federal labor and employment laws give employers the right to garnish an employee’s wages — subtract chunks from a worker’s paycheck — in cases of overpayment. The federal law, known as the Fair Labor Standards Act, is notoriously weak on worker protections when it comes to garnishing wages.

What if my employer accidentally overpaid you?

If the employer has overpaid an employee by mistake then the employer has the right to reclaim that money back. The exception to this is section 14 of the Act which provides for the case of an overpayment, allowing employers to make a deduction and correct the error.

What happens if your employer accidentally overpays you?

Yes, if you are overpaid, your employer has the legal right to take back the full amount. What happens if your employer accidentally overpays you? The Federal Labor Standards Act (FLSA) gives legal rights to every company in the state to take back an overpayment from an employee, no matter the consequences. Can an ex-employer claim overpaid wages?

Can a company take Back overpaid wages from an employee?

The Federal Labor Standards Act (FLSA) gives legal rights to every company in the state to take back an overpayment from an employee, no matter the consequences. Can an ex-employer claim overpaid wages? Yes, they can. Even if the employee has left the company and moved on, the former employer has all the rights to reclaim the overpaid money.

Can I fire an employee who refuses to return an overpayment?

Always bear in mind, though, that with the exception of those under special contracts or union agreements, most employees are employed “at will”. This means an employer could fire an employee who refuses to return an overpayment.

How do I repay a wage overpayment myself?

Write a check or use another acceptable form of payment to repay the overpayment. Federal law regards wage overpayment as a pay advance or loan and does not prohibit your employer from taking the amount from your next paycheck without your consent. But state law might require your employer to have your written consent to make the deduction.