Common use of Overpayments/Payroll Errors Clause in Contracts

Overpayments/Payroll Errors. When the State determines an overpayment has been made to an employee, it shall notify the employee of the overpayment and afford the employee an opportunity to respond prior to commencing recoupment actions. Thereafter, reimbursement shall be made to the State through one of the following methods mutually agreed to by the employee and the State: 1. Cash payment or payments. 2. Installments through payroll deduction to cover at least the same number of pay periods in which the error occurred. 3. The adjustment of appropriate leave credits or compensating time off, provided that the overpayment involves the accrual or crediting of leave credits (e.g., vacation, annual leave, or holiday) or compensating time off. Absent mutual agreement on a method of reimbursement, the State shall proceed with recoupment in the manner set forth in paragraph (2).