Overpaid for 3 years

[hokie]

Private hospital unknowingly overpays an employee for 3 years. Employee stills works there.

How much does the employee need to pay back? Is there a statute of limitations here?

 

[hokie]

The employee originally had a higher paying position for 2 years, then willing switched to another job within the same company for less pay.

To my knowledge there is no contract of how much the 2nd, less paying, wage is or should be. HR has documentation of the job posting, but I am not aware if any salary or wage details were sighted in the job posting.

HR has informed the employee that 'many managers have since left' from the time the job switch was made and that this is a 'extremely odd' scenario. Take that FWIW.

The hospital wants to reduce the employee's current wage by 30%.

 

[army judge]

The employee originally had a higher paying position for 2 years, then willing switched to another job within the same company for less pay.

To my knowledge there is no contract of how much the 2nd, less paying, wage is or should be. HR has documentation of the job posting, but I am not aware if any salary or wage details were sighted in the job posting.

HR has informed the employee that 'many managers have since left' from the time the job switch was made and that this is a 'extremely odd' scenario. Take that FWIW.

The hospital wants to reduce the employee's current wage by 30%.

You do know, the current situation aside, absent a contract; an employer can reduce your wages at any time.

 

[hokie]

Yes that is true. The main concern, with respect to this forum, is if any back pay is necessary.

 

[army judge]

Yes that is true. The main concern, with respect to this forum, is if any back pay is necessary.

Absent a specific legal agreement, you wouldn't owe them any of the overage.
They, most likely, won't agree.
If they disagree, they could demand you pay them the alleged overage.
Should you refuse, they could fire you.
They might also sue you.
The facts of this situation would best be settled before a judge.
Or, a compromise could be reached.
Either way, you might require the services of an attorney in your area.

 

[Patricia_Young]

North Carolina wage and hour law requires is that the employee receive the wage decrease in writing 24 hours in advance.

Are you saying this didn't happen three years ago?

 

[army judge]

North Carolina wage and hour law requires is that the employee receive the wage decrease in writing 24 hours in advance.

Are you saying this didn't happen three years ago?

It hasn't happened, according to my understanding.

The employer is discussing reducing the person's salary.

 

[hokie]

Unfortunately I am not the employee in this situation, but I will provide updates as I receive them.

Thanks everyone for your help.

 

[Patricia_Young]

I understand that, but if the intent of the reduction of the hourly wage is to recover an overpayment of wages where the required written notice was never provided, I wouldn't want to defend that in court or with the state DOL.

 

[army judge]

I understand that, but if the intent of the reduction of the hourly wage is to recover an overpayment of wages where the required written notice was never provided, I wouldn't want to defend that in court or with the state DOL.

I think we're missing a few key details. I didn't interpret it that way. But, you're right, if that's what the hospital is gonna do, it'll be a tough sell.

I think they want to lower wages. That wasn't done two years ago.

If they're stupid enough to go after the overage, they'll lose. They might try to bully, confuse, and intimidate to get the person to agree to it.

 

[Patricia_Young]

Could be.

OP, is the wage decrease to a rate that would normally be paid for the lower position?

 

[hokie]

My understanding is the wage decrease is $2/hr lower than a newly hired employee of the same position. By now she has 3 year of experience performing this job.

I got word today the employee's last paycheck was 30% less than her most recent one. The employee worked the same amount of hours. I understand it is illegal to reduce an employee's wage without written consent?

 

[Patricia_Young]

Doesn't have to be written consent, but does have to be written notification, at least 24 hours in advance, as I previously stated.

If I were her, I'd file the wage claim for an improper wage decrease. Even if they gave written notification, I would argue that the intent of the reduction is to recover an "overpayment" for a wage decrease that she was never notified in writing of. Might work, might not, but it will force the employer to justify the reduction.

 

[hokie]

Where would she file the wage claim?

Thanks for your help.

 

[Patricia_Young]

http://www.nclabor.com/wh/fact sheets/wagecomplaint.htm

If that doesn't work, she might have better luck with a small claims action, where "intent" might be given more weight.