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  1. #1
    Join Date
    Oct 2010
    Posts
    3

    Angry Employer Claims Workers Were Overpaid and Wants Money Back

    My question involves employment and labor law for the state of: Texas.

    My boyfriend works at a company through a temp agency. He has been there since May of this year. He had been making $15/hr on a student "apprentice" program, which seemed higher than other regular temp employees' pays ($11-12/hr), from what he could tell. There was another girl in the same situation, also making $15/hr. They both (separately) asked the temp agency if their pay was correct, as it seemed high. The temp service said that they were receiving the right compensation. They are paid weekly, if it matters.

    Earlier today, he listened to a voicemail left from the temp service that said that he has been overpaid since he started. He was only supposed to be making $11/hr, and that they were decreasing his pay to that. They also plan on docking his pay to repay what he had been overpaid. To our calculations, that's ~$2600! Texas minimum wage is $7.25 (if it matters for anything). The other girl no longer works there, so he does not know about her situation, or if they have even spoken to her. He won't find out more information until Monday after the weekend.

    He is paid by direct deposit, which states that they can take money out in case of error (what he signed when signing up). Is this one of those situations? For now, he has emptied his account. I think he should close it to prevent possible overdrafts from them. Is this a good idea?

    Can this be legal of them even after he brought it to their attention when he asked if his pay was correct? What type of company does not notice something like this for over 4 months? He also does not remember signing any paper stating what his pay would be, so who is to say that they were "overpaying" him? Could this have just been a miscommunication between the company and the temp service and one of them just needs to eat this? He certainly does not have the lump sum to pay back, but even paying a penny seems wrong and shady!

    What does anyone think? Or any questions about something I maybe missed?

    Thanks for the help!!

  2. #2
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Overpaid Even After Questioned - Now Employer Wants Money Back

    The first deduction they make for the "overpayment", if I were him, I'd file a claim with the Texas Workforce Commission. May work, may not, but Texas in fhe form of the TWC is a little more stringent when it comes to "implied contracts". If that doesn't work, a smal claims action might (or might not). Does he have any dates, times, and names of persons he spoke to at the agency about this?

    You'd be suprised how many employers, unfortunately, don't audit their payroll records in a timely manner.

  3. #3
    Join Date
    Oct 2010
    Posts
    3

    Default Re: Employer Claims Workers Were Overpaid and Wants Money Back

    Unfortunately, he did not keep a record of when and with whom he spoke with. Didn't seem necessary. We're hoping that the corroborating story of the other employee can help about this, though? He knows it was about 3 weeks to a month into the job, when he received his second or third check, that he asked the temp service about it.

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Employer Claims Workers Were Overpaid and Wants Money Back

    You're stating that your friend took a job without having any knowledge of how much he would be paid?

  5. #5
    Join Date
    Oct 2010
    Posts
    3

    Default Re: Employer Claims Workers Were Overpaid and Wants Money Back

    Just asked him. OKay, let's go back to when he was hired.

    He applied for the job through the company he is working at, not the temp service. Wrote an email to an HR lady from an internet posting. She set up an interview time and he interviewed with someone else. They liked him and told him to go to the temp service because they cannot hire on employees right now, but they can hire temps. So he went to the temp service and applied there, was hired, and started working at the company.

    The only time he was told a pay was from the HR lady that he never met in person. In an email where he was asking about how the temp service pay works, he said:
    "I should have asked while I was there, but I did not. Will 'temp service' get a percentage of my pay since I am going to be working for their temp agency?"
    and she said:
    "No you still will get paid 11.00 per hour, they will not take a percentage of that. We have to pay them a mark-up rate."

    He still went back and asked the temp service if his pay was correct the two or three checks later, though, because it was $15 instead of this $11. The temp service said that they were told to pay $15, so we just thought it was good fortune and that they really liked him! (Stupid thought, now I guess.) But if they were told to pay him $15, is that an issue between the temp service and the company?

    Just went back further in my emails- the job posting that I emailed to him for it says $11/hr, too.

    Texas law is:
    LABOR CODE
    TITLE 2. PROTECTION OF LABORERS
    SUBTITLE C. WAGES
    CHAPTER 61. PAYMENT OF WAGES
    SUBCHAPTER A. GENERAL PROVISIONS
    Sec. 61.018. DEDUCTION FROM WAGES. An employer may not withhold or divert any part of an employee's wages unless the employer:
    (1) is ordered to do so by a court of competent jurisdiction;
    (2) is authorized to do so by state or federal law; or
    (3) has written authorization from the employee to deduct part of the wages for a lawful purpose.

    How does this play into it? Sorry so many questions!

  6. #6
    Join Date
    Dec 2007
    Posts
    2,357

    Default Re: Employer Claims Workers Were Overpaid and Wants Money Back

    That cite really refers to a deduction from NET pay (after taxes). Don't know what method the employer is proposing he pay this back.

    Go back and read my first response. Even if the above cite DID apply in this case, a claim with the TWC would be the recourse anyway.

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