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Accidentally Overpaid an Employee? You CAN Get That Money Back… Sometimes… But It’s Complicated

Hey there, fellow employers! This is our “DON’T TRY THIS AT HOME” newsletter. Everyone knows the rule about not recouping or taking money back from employees, right?

Ever accidentally overpaid an employee and wished you could just deduct it from their next paycheck? Seems simple enough.

Well, hold your horses! Turns out, this area of law is more complicated than a Taylor Swift relationship. (And trust us, *some of our staff* knows a thing or two about those – why else would this pop star show up in our newsletters so often? Anywho….)

While it’s true that you can sometimes deduct wage overpayments, even if it dips below minimum wage (gasp!), there are a whole bunch of legal hoops to jump through first. Think: written authorizations, compliance with the Texas Payday Law, the Fair Labor Standards Act (FLSA), and maybe even a sprinkle of Texas Property Code for good measure. (Fun times, right?)

So, what exactly can you do?

“You Need to Calm Down” and Learn What You’re Up Against

Attempting to navigate this legal maze without expert guidance is like trying to decipher a Taylor Swift song after only hearing the chorus – you might think you get the gist, but you’re probably missing some crucial details. (And those details could end up costing you!)

Here’s the potential fallout you’re looking at:

  • Legal Pitfalls. One wrong move could land you in hot water with the Texas Workforce Commission (TWC) or even the Department of Labor (DOL). (Nobody wants a “Bad Blood” situation with those folks, they can hold an oversight ‘grudge’ for years!)
  • Employee Disputes. Mishandling wage deductions can lead to disgruntled employees, claims of wage theft, and even lawsuits. (Do you really want to be the subject of a Taylor Swift revenge song?)
  • Financial Risks. Failing to comply with the law could result in hefty fines and penalties. (Suddenly, that overpayment seems like a drop in the bucket.)

How Do You Navigate This “Delicate” Situation? (Hi, Over Here!)

Don’t risk a legal “Red” alert! Our team of experienced employment lawyers can help you navigate the complexities of wage deductions, ensuring you stay compliant with the law and avoid costly mistakes. 

Specifically, we can assist you in:

  • Developing clear policies. We’ll work with you to create comprehensive policies on wage overpayments and deductions that protect your business and your employees.
  • Obtaining proper authorizations. We’ll ensure you have the necessary written authorizations from employees before making any deductions.
  • Staying up-to-date on the law. We’ll keep you informed about any changes in employment law that may impact your wage deduction practices. 

So, before you try to “Shake It Off” and handle wage overpayments on your own, remember: this is a “Delicate” situation that requires expert guidance. 

Contact us today for a consultation, and let us help you keep your business on the right track. (Maybe we can even swap some Taylor Swift theories while we’re at it!)

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