OT errors
Frenchie
116 Posts
Is it a violation of Wage and Hour to recover an overpayment of overtime by not paying future overtime until the overage is corrected?
Comments
I believe that you will be in compliance if you "pay" the employee the earned overtime and then deduct the overpayment.
Geno
By that do you mean we must show the pay going in and then back out on the same pay?
Yes, show the legitimate overtime that was earned in the most recent pay period being paid under gross income and then make the deduction of your previous overpayment. You are paying the overtime as the FLSA requires -- nothing says that it is protected from deductions.
If the employe has already acknowledged the overpayment, you will be fine.
If you foresee the employee challenging the deduction, then you had better have a discussion with the employee prior to payday and then take marc's advice and document (in addition to the check stub information) the transaction.
Geno
Call it an overabundance of caution.