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Committee continues talks on SB 968 to limit employer deductions for erroneous overpayments
Summary
Senate Bill 968 would create a process allowing employers to reclaim erroneous overpayments of wages under a defined procedure; committee members and stakeholders are negotiating cap on look‑back period and percentage limits on paycheck deductions.
The Senate Committee on Labor and Business opened a work session on Senate Bill 968 on March 25 and carried it over to allow further negotiations among stakeholders.
Staff explained the dash 1 amendment offers a process for employers to make deductions for erroneous overpayments in amounts greater than an employee's entitlement under certain conditions; a subsequent amendment draft removes the need to renegotiate collective bargaining agreements entered into before the bill's effective date.
Stakeholder representatives from labor and business reported they had identified areas of agreement on notification language and on preventing full‑paycheck recoveries. The primary remaining issue is the appropriate look‑back period for employers to recover overpayments; the original bill proposed a 90‑day look‑back, while public‑sector practice cited during discussion ranges from two to three years. The committee and stakeholders are weighing a compromise on that timeframe and limits on the percentage of a paycheck that may be recovered at one time.
Committee leadership said they want to prevent a situation where an employee who received an erroneous payment sees an entire future paycheck swept by recovery; work continues to define a reasonable cap and look‑back that balance employer remedies and employee financial stability.
No vote occurred; the committee carried SB 968 over to continue negotiations and requested updated language from legislative counsel.
