Deduction for Overpayment of Wages

In some instances, you may not know the exact number of hours that an employee worked in a pay period; for example, if an employee failed to turn in a time record, the time record was lost or misplaced or the employee is absent or on leave.

In that situation, employers will often pay an employee for the hours the employee was scheduled to work and address any overpayment at a later date.

Historically, employers may have made deductions in the next payroll period, either with or without the employee’s written authorization to do so. Because of the Labor Commissioner’s strict adherence to case law, as well as the Labor Code, this action involves risk.