Overtime payback requested by employer

Hello, I have searched through the forums below with no luck to my current situation, I am hoping someone can shed some light on this.

I work for a IT consulting firm as a hourly project manager that does payroll and medicall processing for a fortune 500 company, my questions is I recently received a letter indicating a audit on there part and that the overtime I received must be paid back due to them having a certain agreement with the existing company I consult for, I have never signed anything indicating this during my onboarding process, I have always been paid overtime, is this a tactic used to ask for money in todays economy, I believe this is illegal practice, I am being told that if I dont respond soon they will put me on collection, I am still currently employed with them, what do I do, any insight would be extremly helpfull.

Thank You

1 answer  |  asked Feb 25, 2009 10:06 AM [EST]  |  applies to New York

Answers (1)

David M. Lira
Employer Claims Overpayment

An employer cannot make the payment of wages contingent on its receipt of revenues from a customer. So, even if a later audit shows that a customer overpaid for somthing, that has no effect on the wages paid to employees. This, of course, assumes that employees properly reported their hours.

Sometimes, an employer might overpay an employee by mistake. The employee is not entitled to keep the overpayment. However, unless the employee voluntarily consent to it, the employer is not free to simply deduct the overpayment from subsequent paychecks. If an employee refuses to pay back the overpayment, the employer would be free to terminate the employee and sue the employee for the amount overpaid.

posted by David M. Lira  |  Feb 26, 2009 09:49 AM [EST]

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