Common use of Underpayment and Overpayment Clause in Contracts

Underpayment and Overpayment. Section 1. When the Employer determines that an employee has been overpaid, it shall notify the employee of this fact and the reasons therefor. If the Employer believes that an overpayment has been made, the Employer shall give the employee a thirty (30) day period of notice before recouping any funds from the employee. The Employer shall arrange to recover such overpayment from the employee over the same period of time in which the employee was overpaid unless the Employer and employee agree to some other arrangement. (For example, an employee who has been overpaid by $5.00 per pay period for six months shall refund the Employer at the rate of $5.00 per pay period over six months.) The Employer will give due consideration to claims of hardship. Section 2. In the event the employee contests whether he/she was actually overpaid, the Employer shall not institute the above refund procedures until the appeal is finally resolved through the grievance procedure. This section shall not apply in instances where the appeal process cannot be completed prior to the employee's termination from State service. In such event, the employer may withhold from any payment due sufficient funds to cover the alleged outstanding liability, pending final resolution of appeal. Section 3. In the event that an employee is underpaid, the employer shall arrange to make the employee whole for such underpayment in the next biweekly paycheck. The Employer and the employee may agree to some other arrangement.