EmploymentQuestion 237 of 1632

A bookkeeper discovers the company overpaid an employee $300 in a prior paycheck due to a clerical error. What is the lawful way to recover the money in California?

a.Deduct the full $300 from the next paycheck without notice
b.Get the employee's voluntary written authorization to repay
c.Deduct it automatically over the next two pay periods, in equal parts
d.Withhold it from the employee's accrued vacation balance instead

Explanation

Labor Code §221 makes it unlawful for an employer to collect back wages already paid, so a unilateral deduction is unlawful however thinly it is spread — over one paycheck or over two. Section 224 permits a deduction only where state or federal law requires it or where the employee expressly authorizes it in writing, which is why voluntary written authorization, or simply asking for repayment outside payroll, is the lawful route. Reaching into accrued vacation fails for the same reason: vested vacation is wages under §227.3, not a reserve the employer may draw on.

Law Reference: Labor Code §221, §224, §227.3

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