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Bill would limit employer wage clawbacks for payroll overpayments; unions cite Workday errors, businesses urge caution
Summary
Senate Bill 968 would permit employers to recover erroneous overpayments but cap deductions and limit look-back to 90 days; unions and state workers described large retroactive demands tied to Workday errors, while business groups said the 90‑day limit and notice/acknowledgment rules raise legal and operational questions.
Senate Bill 968 drew lengthy testimony Thursday as the committee considered whether to set limits on employer deductions to recover erroneous wage overpayments.
The dash-1 amendment presented to the committee provides a process allowing employers to recover overpayments while restricting repayment collections to wages overpaid within a 90-day look-back period and limiting automatic payroll deductions to 5% of an employee's pay in a pay period unless the employee agrees otherwise.
Chris Carpenter, counsel for the Oregon Federation of Nurses and Health Professionals, said the amendment establishes reasonable sideboards around when employers may deduct wages for overpayments and does not prevent employers from pursuing other legal…
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