Legal Question in Employment Law in California
Over paid
I have been working at the same company for 3 years. My check is direct deposited and I don't check the amounts. They say they have overpaid be from the beginning and want to garnish my check for $700-1000. a month. I did not realize I was being overpaid, can they take that much or any out of my check based on their error?
3 Answers from Attorneys
Re: Over paid
IF you were actually overpaid, then you owe the money back. You should negotiate a reasonable repayment plan you can afford; there are no rules on repayment, but you could argue that the rules about wage garnishment that allows no more than 25% of gross to be taken by creditors, and the courts can reduce that percentage on a showing of your expenses and need. If you can't work it out, it might be worth your time to have an attorney help. Contact me if you need to.
Re: Over paid
Mr. Nelson failed to mention that garnishment can only occur after a judgment is entered. In your situation, the employer is prohibited from collecting money from your paycheck without your written consent. Still, since you probably owe the money, maybe you can negotiate a settlement for a reduction and deduction, to save them attorney's fees and court aggravation.
If you make too much of a stink, though, it could put your job in jeopardy. So you have to do a fine balancing act.
Re: Over paid
The general rule about overpayments on a contract (such as employment) is that a person must refund the overpayment unless two factors both are present: (1) the person being overpaid was truly innocent of any knowledge or reasonable suspicion that he or she was being overpaid at the time, and (2) the person has changed his or her position in reasonable reliance upon the correctness of the payment received.
Garnishment per se is not an appropriate remedy for this error from a legal standpoint, but maybe a deduction equivalent to what could be garnished is a simple are realistic means of repayment.
Make sure none of this affects your credit or personnel record. It wasn't your fault.