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.