Correction of Payroll Clause Samples
The Correction of Payroll clause establishes the employer's right and obligation to rectify any errors or discrepancies in employee payroll calculations. In practice, this means that if an employee is overpaid or underpaid due to administrative mistakes, the employer can adjust future payments to correct the error, either by deducting overpayments or issuing additional payments for underpayments. This clause ensures that payroll records remain accurate and fair, protecting both parties from ongoing financial inaccuracies and disputes.
Correction of Payroll. Errors - In the event it is determined there has been an error in an employee’s paycheck, an underpayment shall be corrected within two pay periods; and, upon written notice, an overpayment shall be corrected as follows:
A. If the overpayment involved only one (1) paycheck;
1. by payroll deductions spread over two (2) pay periods; or
2. by payments from the employee spread over two (2) pay periods.
B. If the overpayment involved multiple paychecks, by a repayment schedule through payroll deduction not to exceed twenty-six (26) pay periods in duration, with a minimum payroll deduction of not less than twenty-five dollars ($25) per pay period.
C. If an employee separates from the City service before an overpayment is repaid, any remaining amount due the City will be deducted from his/her final paycheck(s).
D. By other means as may be mutually agreed between the City and the employee, the union representative may participate in this process at the request of the involved employee. All parties will communicate/cooperate in resolving these issues.
Correction of Payroll. Errors - In the event it is determined there has been an error in an employee’s paycheck, an underpayment shall be corrected within two pay periods; and upon written notice, an overpayment shall be corrected as follows:
A. If the overpayment involved only one paycheck;
1. By payroll deductions spread over two pay periods; or
2. By payments from the employee spread over two pay periods.
B. If the overpayment involved multiple paychecks, by a prepayment schedule through payroll deduction not to exceed twenty-six (26) pay periods in duration, with a minimum payroll deduction of not less than twenty-five dollars ($25) per pay period.
C. If an employee separates from the City service before an overpayment is repaid, any remaining amount due the City will be deducted from his/her final paycheck(s).
D. By other means as may be mutually agreed between the City and the employee. The Guild Representative may participate in this process at the request of the involved employee. All parties will communicate/cooperate in resolving these issues.