Q: My company has overpaid me and others. This over payment went on for at least six months. Do we have to pay that back?
The overpayments ranged from 3,000 to 18,000 dollars, the error was on the fault of the HR department and the company not having an updated budget report.
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- Illinois
- (630) 344-6370
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- Answered
A:
This situation should be governed by the Illinois Wage Payment and Collection Act.
"When an employee agrees an overpayment has been made the entire sum may be deducted on the employee's first regular payday subsequent to the payday on which the overpayment occurred. If an overpayment is not discovered and one or more paydays have passed, the employer and employee shall agree on a repayment schedule. If the employer and employee cannot agree, the employer cannot make deductions without complying with Section 9 of the Act." - Illinois Department of Labor FAQ on Deduction From Pay
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