How to resolve repayment schedule dispute after job overpaid me by $600?

Question

On 3/28/2025, my job overpaid me by $600. On 3/31/2025, after clocking out, I was asked to sign a repayment schedule of $200 deductions from my next three checks. Within 24 hours, I informed my manager in writing that I couldn't meet those terms and proposed an alternative arrangement. However, I was told to deal with HR, who contacted me outside of work hours, and I couldn't answer. I sent a text to HR during work hours but did not receive a response. They now claim I should have answered the call if it was important. Payroll closes tomorrow, and the original repayment plan is set to be deducted from my next paycheck on 4/11/2025. How can I resolve this issue?

James L. Arrasmith · Answer

Under California labor laws, while employers have the right to recover overpayments, they must follow proper procedures that respect your rights as an employee. Your prompt notification to management about your inability to adhere to the initial repayment schedule demonstrates good faith, and California law generally requires mutual agreement for wage deductions related to overpayments. 
 
Your immediate action should involve sending a formal written communication to both your direct manager and HR department before payroll closes, explicitly referencing your previous communications and clearly restating your proposed alternative repayment schedule. Document all communications meticulously, including dates, times, and the content of all interactions related to this matter, as this documentation may prove invaluable should further disputes arise. Additionally, consider requesting an in-person meeting with HR to discuss the situation face-to-face, which often facilitates more productive resolution than asynchronous communication. 
 
Should the employer proceed with the original deduction schedule without your consent, you may have grounds to file a wage claim with the California Labor Commissioner's Office through the Division of Labor Standards Enforcement. Remember that employers must obtain written consent for deductions meant to recover overpayments, and unilateral deductions that cause financial hardship might be contested under California labor regulations. Our experience with similar cases suggests that most employers prefer to negotiate reasonable repayment terms rather than face potential regulatory scrutiny or damage to employee relations.

Q: How to resolve repayment schedule dispute after job overpaid me by $600?