My daughter-in-law was overpaid by a temp agency for approximately 4 months.

My daughter-in-law was overpaid by a temp agency for approximately 4 months.

The had their pay stubs posted on online portal. Her checks were consistent in amount, so she never looked at them closely. Apparently, they were inadvertently paying her second shift differential. It’s not a huge amount but enough that she can't just pay it back as they've asked. She is now being hired full time at the company she has been in n temp status, hence they discovered their error. They've asked her to sign a paper allowing them to garnish her wages to payback the mistake as she starts full time with the company. She is willing to pay it back but where is their accountability for the error? She wants to counter offer them a payment plan that does not involve the company she will now be working for. Additionally, their garnishment will take heree paychecks down enough she’d struggle a bit to make her ends meet. Just wonderingwhat the professionals here would advise? If she pays back the gross amount, isn't she paying back the FICA, Medicare, and taxes as well? Will the temp agency pay them back? I told her to make a counter offer 25-50% less, pay it off by sending them a check each month per a schedule that will not make her bills unmanageable. I would assume they'd take this offer because taking her to court would be expensive. Will this amount come off her gross wages for the year on her W-2? Lots of questions and I appreciate any responses.

Why women love us:

  • Daily articles on career topics
  • Jobs at companies dedicated to hiring more women
  • Advice and support from an authentic community
  • Events that help you level up in your career
  • Free membership, always

Share your insight

Join an authentic community that helps women support each other at work. Share your professional experience or ask for advice — you can even post anonymously.

6 Comments

Join the conversation
  1. Chastity Smith

    Most companies that have direct deposit have the ability and approval (signed at hire) to reverse any transaction that is in error. I would advise her to close her account and open a new bank account at a different bank before approaching them with a counter offer. She needs to sit down possibly with an accountant to figure out the exact amount owed repay that amount in a lump sum (may need to get a personal loan) and request a corrected w2 to ensure her tax status is correct. She will need to refigure her wages at the correct amount and then the taxes that should have been held out to find this corrected number. It isn't as simple as #of

  2. Chastity Smith

    Hours worked x the differentiated rate.

  3. Robin

    They have her the amount. Its approximately $1500. I appreciate the responses!

  4. Anonymous

    If the overpayment was a shift differential for a p/t job, how fast do they want repayment? All at once or over 3-4 paychecks? I doubt, now that she's going full-time, that even if they want it over 1-2 months, the amount she pays back will be all that much. I would take the garnishment over her writing a check to pay back since it is money she won't miss because she doesn't get it, but that is just me. The question about taxes is appropriate, but I doubt it will make much of a difference in the repayment. It will all work out when she receives her W-2; if the reimbursement doesn't factor in taxes, it will increase her refund on next year's taxes.

  5. Anonymous

    I would contact the EEOC to find out the labor laws in your/state. This type of mistake is tightly controlled and the EEOC can help provide some guidelines.

  6. Anonymous

    Counter offer a payment plan, learn your states rules on workplace payment overage and how they are allowed to handle it. It shouldn't be blown up into an issue for either parties. They paid wrong, and she's gotten paid for a position/shift she didn't work.

Browse recent posts

Fairygodboss VIP
Achieve your career goals.
Be part of the largest online career community for women to find jobs, advice, and support — for free.
Fairygodboss members