Memorandum of Understanding with Unit 12 - Dpa - State of California

4. By implementing the provisions of this agreement, departments will discontinuetheir practice of issuing a salary advance in lieu of a regular paycheck in order toavoid an overpayment due to a late dock.5. Employees who separate from State service after receiving an overpaymentbecause of operation of paragraph 2 above, will have their separation pay adjustedto repay the overpayment to the State.B. Payroll/Time Keeping Errors1. When the State determines an overpayment has been made to an employee,other than the late dock provision in section a above, it shall notify the employee ofthe overpayment and afford the employee an opportunity to respond prior tocommencing recoupment actions. The notification to the employee shall contain thefollowing:a. detailed explanation of how the overpayment occurred;b. the date(s)/pay period(s) in which the overpayment occurred;c. a calculation showing the amount of 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 State through one of the following methodsmutually agreed to by the employee and the State:a. Installments through payroll deduction to cover at least the same numberof pay periods in which the error occurred. When overpayments havecontinued for more than one year, full payment may be required by the Statethrough payroll deductions over the period of 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 of the impacted pay check(s) will becalculated after the gross payroll deduction amount is deducted from that paycheck(s).b. The adjustment of appropriate leave credits or compensating time off,provided that the overpayment involves the accrual or crediting of leavecredits (e.g., vacation, annual leave, excess, or holiday) or compensatingtime off. Any errors in sick leave balances may only be adjusted with sickleave credits.c. Cash payment or payments through agency collection process (only at theemployee’s request).d. Absent mutual agreement on a method of reimbursement, the State shallproceed with recoupment in the manner set forth in Paragraph B2a of thissection.11BU 12(99-01)