EmploymentQuestion 933 of 1605

An employer discovers it overpaid an employee and, without consent, deducts the full overpayment from the next paycheck, dropping the pay below what was earned. Is this lawful?

a.Yes, because the money was never really earned
b.No, Labor Code §221 generally prohibits taking back wages already paid without the employee's voluntary written authorization
c.Yes, as long as the deduction is noted on the pay stub
d.Yes, employers may always self-correct any overpayment immediately

Explanation

Labor Code §221 makes it unlawful for an employer to collect or receive back any part of wages already paid to an employee. Even for a genuine overpayment, the employer generally cannot unilaterally deduct it from wages; it must seek voluntary written authorization or pursue other lawful means. Simply noting the deduction on a stub or asserting the money 'wasn't earned' does not make an unauthorized wage clawback lawful.

Law Reference: Labor Code §221

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