KBS Reference Desk: Over-Payment Withholding

Q:    An employee was voluntarily reassigned to a position with a lower daily rate. Payroll implemented the salary change one month late resulting in the employee being overpaid. Can payroll deduct the over-payment from the employee’s check next pay period? 

A:    Yes, but payroll may only withhold the over-payment from the employee’s pay check with written authorization from the employee. 

If your district utilizes standard TASB contracts, it states “you agree that the district may deduct any over-payments under this Contract from one or more of your paychecks.” This language complies with the Texas Payday Law and is sufficient consent from the employee to apply the deduction.

If your district’s employment contracts do not provide for withholding and the employee has not signed an authorization to withhold for overpayment, then the district should request the employee return the funds owed in writing specifying the amount owed and a deadline to respond. Failure to return the overpayment is a violation of the Educator Code of Ethics, and grounds for both separation of employment and criminal penalties. 

In order to avoid this concern in the future, all employee contracts should incorporate the above identified contact language.

At-will employees or employees already under contract without the above language should sign a wage deduction authorization agreement at the initiation of each school year that states, “I acknowledge that any wage over-payment constitutes an advance of future wages payable to me, and I give permission to the district to deduct any wage over-payments in full from any subsequent paycheck(s) to which I become entitled until the overpaid amount has been fully repaid.” 

Related Posts

Recent Articles

KBS Reference Desk: TOMA Social Gatherings Conventions
June 17, 2022
KBS Reference Desk: Volunteers Under Guardian Plan
June 10, 2022
KBS Reference Desk: DOI and Certification
June 3, 2022
KBS Reference Desk: FML Leave Over the Summer
May 27, 2022
KBS Reference Desk: Decrease in Compensation
May 20, 2022
KBS Reference Desk: Participation in Graduation Ceremonies
May 13, 2022
KBS Reference Desk: Temporary Custodians of Record – TPIA
May 6, 2022
KBS Reference Desk: Driving Students to Polls
April 29, 2022
KBS Reference Desk: Authority to Create New Position
April 22, 2022
KBS Reference Desk: Booster Club Raffle
April 15, 2022
KBS Reference Desk: Returning a Teacher to Probationary Status
April 8, 2022
KBS Reference Desk: Termination of Probationary Contract While On Leave
April 1, 2022
KBS Reference Desk: Long COVID and Special Education Referrals
March 25, 2022
KBS Reference Desk: Pay During Weather Closure
March 18, 2022
KBS Reference Desk: Nepotism
March 11, 2022
KBS Reference Desk: New SBOE Rules on Contract Abandonment
March 4, 2022
KBS Reference Desk: Web Accessibility
February 25, 2022
KBS Reference Desk: Political Advocacy Prohibitions
February 18, 2022
KBS Reference Desk: Pay During Weather Closure
February 11, 2022
KBS Reference Desk: House Bill 2581 Procurement Updates
February 4, 2022
KBS Reference Desk: CDL Waivers for Bus Drivers
January 28, 2022
KBS Reference Desk: Interstate Travel Liability and Travel Forms Best Practices
January 21, 2022
KBS Reference Desk: Updated Stay at Home Periods
January 14, 2022
KBS Reference Desk: On Call Employees Over Holidays
December 17, 2021
KBS Reference Desk: Holiday Decorations
December 10, 2021