Memorandum of Understanding with Unit 12 - Dpa - State of California
Memorandum of Understanding with Unit 12 - Dpa - State of California
Memorandum of Understanding with Unit 12 - Dpa - State of California
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4. By implementing the provisions <strong>of</strong> this agreement, departments will discontinuetheir practice <strong>of</strong> issuing a salary advance in lieu <strong>of</strong> a regular paycheck in order toavoid an overpayment due to a late dock.5. Employees who separate from <strong>State</strong> service after receiving an overpaymentbecause <strong>of</strong> operation <strong>of</strong> paragraph 2 above, will have their separation pay adjustedto repay the overpayment to the <strong>State</strong>.B. Payroll/Time Keeping Errors1. When the <strong>State</strong> determines an overpayment has been made to an employee,other than the late dock provision in section a above, it shall notify the employee <strong>of</strong>the overpayment and afford the employee an opportunity to respond prior tocommencing recoupment actions. The notification to the employee shall contain thefollowing:a. detailed explanation <strong>of</strong> how the overpayment occurred;b. the date(s)/pay period(s) in which the overpayment occurred;c. a calculation showing the amount <strong>of</strong> the overpayment and adjustments forsocial security, medicare, and retirement;d. a proposed repayment plan; ande. timeframe in which the employee must respond to the notification (15days).2. Reimbursement shall be made to the <strong>State</strong> through one <strong>of</strong> the following methodsmutually agreed to by the employee and the <strong>State</strong>:a. Installments through payroll deduction to cover at least the same number<strong>of</strong> pay periods in which the error occurred. When overpayments havecontinued for more than one year, full payment may be required by the <strong>State</strong>through payroll deductions over the period <strong>of</strong> one year. Nothing precludesthe employer and the employee agreeing to a longer/shorter payment plan.When an overpayment is recovered from an employee’s subsequent paycheck(s), the federal and state taxes <strong>of</strong> the impacted pay check(s) will becalculated after the gross payroll deduction amount is deducted from that paycheck(s).b. The adjustment <strong>of</strong> appropriate leave credits or compensating time <strong>of</strong>f,provided that the overpayment involves the accrual or crediting <strong>of</strong> leavecredits (e.g., vacation, annual leave, excess, or holiday) or compensatingtime <strong>of</strong>f. Any errors in sick leave balances may only be adjusted <strong>with</strong> sickleave credits.c. Cash payment or payments through agency collection process (only at theemployee’s request).d. Absent mutual agreement on a method <strong>of</strong> reimbursement, the <strong>State</strong> shallproceed <strong>with</strong> recoupment in the manner set forth in Paragraph B2a <strong>of</strong> thissection.11BU <strong>12</strong>(99-01)