Legal Term
Payroll Deduction Error Correction
Legal Definition
The legal mandate requiring employers to identify and promptly rectify inaccuracies in mandatory or voluntary payroll deductions, such as tax withholdings, benefit contributions, or wage garnishments, in compliance with federal and state wage and hour laws to ensure employees receive their full earned wages without unauthorized reductions.
In Plain English
When too much or too little money is mistakenly taken out of your paycheck, your employer must fix the error quickly and pay you back any missing money, protecting your right to full pay.
Example in a Contract
If a payroll deduction error is identified, Employer shall correct such error within the next regular pay period, adjust the Employee's compensation accordingly, and provide a written statement detailing the error, the correction made, and any reimbursable amounts. This correction shall not delay the Employee's regular pay schedule.
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