May an employer make up for a wage overpayment by paying the employee less in the next wage payment?

Author: Alice Gilman

Generally, no. Most state wage payment laws, and the Fair Labor Standards Act, require an employer to pay an employee for all the work performed in each pay period. The employer should formulate a formal repayment plan. These plans usually require the employer to notify the employee of the overpayment and provide the employee with an opportunity to dispute the overpayment, along with a choice of how the repayment will be made (e.g., by personal check or wage deduction).