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Mandatory Deduction for Overpayment of Salary or Wages

Section D: Fiscal Management

Regulation Title: Mandatory Deduction for Overpayment of Salary or Wages
Regulation Code: DKB-R

Print Version (in PDF)

Overpayment of Salary or Wages

An overpayment occurs when an employee is paid for hours they did not work, or paid an incorrect rate.

Illegal Gift of Public Funds

Tucson Unified School District is required by law to recover these overpaid funds as it is considered a gift of public funds. Article IX, Section 7 of the Arizona Constitution prohibits a gift of public funds by any public entity, including school districts.

Arizona law authorizes immediate repayment of any overpaid salary or wages, A.R.S. §23-352(3) Withholding of Wages.

Obligation to Notify Payroll of Overpayment of Salary/Wages

All wage or salary overpayments must be promptly reported to the Payroll Department.

An active employee who discovers an overpayment of salary/wages must immediately notify the Payroll Department.

Departments/sites that discover an overpayment, or that receive notice of an overpayment, must immediately notify the Payroll Department.

The department/site should notify the employee of the overpayment and help the employee work with the Payroll Department.

Departments and sites are not authorized to overlook or forgive any overpayment.

Mandatory Deductions from Payroll

Upon discovery of an overpayment, the employee will receive written notification from the Payroll Department.

Overpayment deductions will start immediately upon notification.

Payroll will set up payroll deductions, which will take place over no more than four (4) pay periods. In the event of extreme hardship, it is the employee’s responsibility to contact the Payroll Department as soon as possible to make arrangements.

Mandatory Deductions from Final Payout, including Leave balances

In the event where an outstanding balance exists for an employee separating from the District, the full amount of the overpayment will be deducted from the final paycheck, and if necessary, from any remaining leave balance refunds, prior to final payout. The employee will receive a written accounting of any remaining funds deducted.

Adopted: September 19, 2018

References:
Article IX, Section 7 of the Arizona Constitution
A.R.S. §23-352(3) Withholding of Wages