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: Felony Conviction and School Board Candidates
April 9, 2021
KBS Reference Desk: T-TESS Rubric Virtual
April 2, 2021
KBS Reference Desk: COVID-19 Vaccination Status Questions and EEO Laws
March 26, 2021
KBS Reference Desk: Certification Addendum
March 19, 2021
KBS Reference Desk: Lifting of Mask Mandate and Implications for UIL Activities
March 12, 2021
KBS Reference Desk: Identification of TPIA Requestor
March 5, 2021
KBS Reference Desk: Pay During Closure
February 26, 2021
KBS Reference Desk: Vaccines and Quarantine
February 19, 2021
KBS Reference Desk: Face Masks and the First Amendment
February 12, 2021
KBS Reference Desk: Virtual Learning and Child Find
February 5, 2021
KBS Reference Desk: American Rescue Plan
January 29, 2021
KBS Reference Desk: Spring Testing
January 22, 2021
KBS Reference Desk: TOMA Suspension Extension – Additional 30 days
January 15, 2021
KBS Reference Desk: Updated FFCRA Guidance
January 8, 2021
KBS Reference Desk: New Stay-at-Home Protocols
December 18, 2020
KBS Reference Desk: Vaccine as a Requirement for School Attendance
December 11, 2020
KBS Reference Desk: Campus Closure due to COVID-19 and Funding
December 4, 2020
KBS Reference Desk: Nonexempt Volunteer Work
November 20, 2020
KBS Reference Desk: Required Transition from Virtual to ON-campus Learning
November 13, 2020
KBS Reference Desk: TPIA – 10-day Extension
November 6, 2020
KBS Reference Desk: Discontinue Virtual Learning
October 30, 2020
KBS Reference Desk: Political Dress
October 23, 2020
KBS Reference Desk: Emergency Safety Drills
October 16, 2020
KBS Reference Desk: Requests for Homebound Instruction During COVID
October 9, 2020
KBS Reference Desk: Mask Exception
October 2, 2020