How Long Do Employers Have to Correct Pay Errors?

Our company just realized that we made an error in the amount of an employee’s pay – how long do we have to fix it?

Mistakes happen.  There is, however, no federal law that recognizes this basic fact of life.  (A few states do recognize that errors happen and have enacted rules that require that the “fix” be made by a certain date – such as the next pay date – or within a certain number of days.) 

Notwithstanding the fact that there is no Federal law covering this issue and many states do not address it, the best advice for employers is to fix it as soon as possible – certainly by the next pay cycle.  Not only will errors affect employee relations but the employer is exposed to a claim for unpaid wages, interest and penalties until it rectifies the situation. 

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