If an employee is accidentally overpaid, can an employer just deduct the amount form the employee’s future paychecks?

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If an employee is accidentally overpaid, can an employer just deduct the amount form the employee’s future paychecks?

My husband was told this morning that his commission for 2010 was calculated incorrectly and as a result he was overpaid. They are withholding his commission check in excess of $5000 plus future commission checks. Can they just do that?

Asked on December 1, 2010 under Employment Labor Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Well first let me ask:  have they given your husband a break down of what they claim is the overpayment or have they just told him that he was overpaid?  He has a right to see how the commission was calculated and where they believe that the error occurred.  If they do not provide that then they may very well be in violation of employment laws in your state.  And ask that until they provide it they do not dock him or withhold any commission checks.  Also, does he have a contract with his employer?  Read it and see if any of the paragraphs address this issue. Then contact the Department of Labor in your State and ask someone there to open up a case for you. Finally, you can seek consultation from an employment lawyer in your state.  Good luck.


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