How can an employer recover overpayment from a terminated employee?

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How can an employer recover overpayment from a terminated employee?

Asked on November 18, 2012 under Bankruptcy Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The only legal way to recover the overpayment, if the employee will not voluntarily pay it, is to sue the employee for the money; the problem is, the law does not allow an employer to deduct amounts an employee owes from any paychecks (including final paychecks or severance) or withhold those checks, unless the employee consents to the deduction. This leaves a lawsuit as the only way to get the money.


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