An employer can make an agreement to recover advances against wages, because advances are simply a prepayment of wages before they are earned. However, it is important to qualify the payment in advance and recover it quickly. If you enter into a collection agreement with an employee for an overpayment, make sure that a payment does not result in the employee`s wages being below the minimum wage for that salary period. You can`t pay your tax bill and want to receive a payment plan? You can ask for a missed tempe agreement. No no. Employers often violate California law when they automatically deduct wages from a worker`s salary or final salary to recover an overpayment of wages. Even if a worker orally accepts that the employer can withhold an overpayment – either in the form of a lump sum deducted from the next pay cheque or in increments deducted from several paychecks – the employer may break the law. It is highly recommended to obtain a refund agreement in a letter signed by the employee and the employer. If approved, it will cost you $50 to set up a tempered contract (added to your balance).
This case reminds employers that, while reimbursement agreements may be lawful, employers must not withhold wage cheques to meet these obligations and that workers must still receive at least the minimum wage for all hours worked. Employers should regularly review their compensation practices to ensure that there are no undue deductions on workers` payments and that final payment procedures are in compliance with existing legislation. Employers should also train their accountants in appropriate wage settlement practices. Employer commissions or incentive plans sometimes allow employers to make certain deductions. The legality of these agreements depends on how they are developed. For example, it is legitimate to require advances or draws to be voted against winning commissions. Similarly, in some situations, employers may reimburse overpaid commissions, for example. B if the goods are returned. On appeal, Hassey argued that the refund agreement violated FLSA`s minimum wage and overtime requirements because he had not received his wages unconditionally. In particular, he submitted that he would be paid during his activity under the repayment agreement on the “condition” that he reimburse the training costs if he left before the expiry of a five-year period.
The court rejected Hassey`s reasoning.