Seyfarth Synopsis: California Labor Code
§ 221 states it is "unlawful for any employer to
collect or receive from an employee any part of wages ... paid ...
to said employee." In other words, employers cannot just take
money back to correct an overpayment of wages. But what if you
discover you've accidentally overpaid an employee?
It's not a back to school special—it's a windfall
(and a shopping trip)! No, actually, it is an employer overpayment
of an employee's wages. It happens and unfortunately, enough
employers have gone about recovering overpayments the wrong way,
leaving a trail of court cases and waiting-time penalties.
So, as an employer, can you recover an overpayment of wages to
an employee? The answer is a resounding ... maybe!
