Common use of Over Payments Clause in Contracts

Over Payments. In the event that an employee receives wages or benefits from the City to which the employee is not entitled, regardless of whether the employee knew or should have known of the over payment, the City shall notify the employee in writing of the overpayment. Such notice will include information supporting that an overpayment exists and the amount of wages and/or benefits to be repaid. For purposes of recovering overpayments by payroll deduction, the following shall apply: (1) The City shall limit the overpayment calculation to a maximum period of three (3) years before the notification. (2) The employee and the City shall meet and attempt to reach mutual agreement on a repayment schedule within thirty (30) calendar days following written notification. (3) If there is no mutual agreement at the end of the thirty (30) calendar day period, the City shall implement the repayment schedule stated in subsection (4) below. (4) If the overpayment amount to be repaid is more than five percent (5%) of the employee’s regular biweekly base pay (gross amount of bi-weekly pay not including shift differential and over time earned in that pay period), the overpayment shall be recovered in biweekly amounts not to exceed five percent (5%) of the employee’s regular biweekly base salary. If an overpayment is less than five percent (5%) of the employee’s regular biweekly base salary, the overpayment shall be recovered in a lump sum deduction from the employee’s paycheck. If an employee leaves City service before the City fully recovers the overpayment, the remaining amount will be deducted from the employee’s final check(s). (5) An employee who disagrees with the City’s determination that the overpayment has been made to the employee may grieve the determination through the grievance procedure. (6) This Article does not waive the City’s right to pursue other legal procedures and processes to recoup an overpayment made to an employee at any time.