PTO deducted by mistake

Hello, I have a confusing situation that I need help with.  We had an employee who went on FMLA leave due to birth of a child. She did not make arrangments to pay for benefits or any deductions that were coming out of her paycheck while on leave.  I did not receive anything from her stating that she did not want to take her leave unpaid (the Company allows this).  We paid 80 hours of her leave with PTO that was in her PTO bank, so she received 1 full paycheck and never mentioned anything about wanting her leave to be unpaid.  I contacted her about paying for her insurance for the following month and that is when she said she did not want to use her PTO and offered to pay it back.   I know that she cannot do this but what other options do we have in order to put the PTO back into her account?  Can we withold a paycheck for 1 payperiod and put that amount into her PTO bank?  We get paid bi weekly. 


  • 3 Comments sorted by Votes Date Added
  • Without attesting to the legality of the situation, that is what I would do! 

    We actually have as part of our FMLA package, a "Request to Use PTO for FMLA" form that must be filled out, or if the emp is unable to return this form in a timely fashion, they must contact HR via phone in order to receive PTO.  We assume the leave is unpaid unless we hear otherwise.  It is easier to cut a check than rescind one!

  • Thanks LauLan, After posting this I got to thinking.  This employee is exempt so wouldn't we need to make sure that we pay her at least $455.00 per week and put the rest of her check in to replace the PTO?


  • I don't think that should be an issue, as long as she acknowledges that she received payment previously.  You should probably have her fill a form attesting to her desire to resolve the situation in this manner.  It is most likely the "cleanest" method of reimbursement, and it seems that she does want her PTO back to use at another time.  I did find a sample form online, and it did offer the option of reimbursement via personal check, but that would be much messier for accounting and payroll to manage.  Here is the jist of the form:


    <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 


    Date:                            _________________


    Employee Name:          _________________


    Emp ID#:                     __________________


    Department:                  __________________



    I have been notified of an overpayment in the net amount of $_________ for pay period ending _________.    I agree that an overpayment has occurred.   I was informed of my right to dispute the amount and I knowingly and without coercion waive my right to dispute the amount of the overpayment. 


    I elect the following method of repayment:


    ___  I authorize the Company to deduct the overpayment from my salary.


    ___  I elect to repay the overpayment by personal check (attached)

    Hope this helps, good luck!

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