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How Do We Get Back Money We Overpaid Employees?

My company's employees are in an uproar about a recent, unpopular decision. They made a mistake on payroll and grossly overpaid many employees. My question would be is it legal for us to take the money back, and if so is it legal for us to get it back by garnishing entire paychecks until the mistake is corrected?

Rita Risser's response:

In California, it is not legal for an employer to garnish the employee's wages to get back over payments. You have to sue each employee in small claims court and then pursue a judgment just like any other creditor. You should be able to win, because the employees knew when they got the money it was not lawfully theirs.

You can ask employees to voluntarily agree to give the money back, and probably most of them will. Work out a mutually agreeable way for them to pay back the money.

Best of luck.

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