If an employer overpays an employees salary upon termination can that employer adjust from future severance payments?

Answer by  makingmoney (110)

Yes, should an employer miscalculate net pay and monies are due to employee in the future such as severance payments the overpayment can be deducted from those earnings. It would be advisable to notify the employee in writing as soon as the discrepancy is noticed.

Answer by  kqwik (317)

It depends on the terms of the termination. At the time of termination, if there is signed contract on the terms of the severance, the employer, by law, must abide by the terms set forth in the severance agreement. This occurrance would only be for retirement. If the employee is fired, the terms are not regulated the same way.

Answer by  LouB (294)

Employers are required to pay employees on their normal pay schedule, so withholding salary is not allowed. Future severance payments can be adjusted if the initial salary amount was miscalculated. When doing this, it is recommended that the company consult their legal department to ensure that they aren't outside of any state regulated guidelines for severance pay.

Answer by  dr84bhl (2789)

Yes would be the answer. If an employee is overpaid the best option is to tell the wages clerk immediately that their wages is wrong. It also shows honesty because the employer could give you a bad reference.

Answer by  eyeguy (3760)

In the most US states , no. Its the employers legal responsibility to properly calculate all monies related to vacation days as well as severance payments.

Answer by  kamal1942 (21)

Yes. The amount paid in excess, as a result of mis-calculations can well be deducted from the payment of Gratuity, Annuity etc.

Answer by  Jessie124 (1885)

The best thing to do is check with local laws. I would imagine this would vary depending on what state you're in. I know Massachusetts is a work-at-will state, and you are lucky if a company offers you severance pay to begin with!

Answer by  becki (229)

If they pay you per hour, they must receive permission from you to take those hours they over paid you for. If it is salary, not hourly, then they should be able to take what was overpaid.