Can a employer garnish an overpayment without an employee’s written consent?

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Can a employer garnish an overpayment without an employee’s written consent?

Our employer overpaid us. Some people took out or moved their money, those who didn’t had the money taken back. Now they are saying that instead of making a signed agreement for re-payment they are going to garnish our whole next check. Is this behavior legal?

Asked on June 4, 2019 under Employment Labor Law, Michigan

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Under most circumstances, an employer may not make a payroll deduction without first having the written consent of the employeee in question. That having been said, certain deductions can be made with or without an employee's permission. For example, garnishments for child/spousal support, certain taxes and accidental overpayments. Specifically, overpayments of wages etc. can be deducted by the employer without written consent unless 1) the deduction iss made within 6 months of the overpayment; 2) theoverpayment resulted from a miscalculation, typo or other clerical error; 3) theemployer gave the employee a written explanation of the deduction at least 1 pay period prior to its having been made; 4) thededuction was not more than 15% of the gross wages earned for the pay period; and 5) after all other required/authorized deductions were made, the deduction for the overpayment did not reduce the employee's hourly gross pay rate for that period below the minimum wage.

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Under most circumstances, an employer may not make a payroll deduction without first having the written consent of the employeee in question. That having been said, certain deductions can be made with or without an employee's permission. For example, garnishments for child/spousal support, certain taxes and accidental overpayments. Specifically, overpayments of wages etc. can be deducted by the employer without written consent unless 1) the deduction iss made within 6 months of the overpayment; 2) theoverpayment resulted from a miscalculation, typo or other clerical error; 3) theemployer gave the employee a written explanation of the deduction at least 1 pay period prior to its having been made; 4) thededuction was not more than 15% of the gross wages earned for the pay period; and 5) after all other required/authorized deductions were made, the deduction for the overpayment did not reduce the employee's hourly gross pay rate for that period below the minimum wage.


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