§ 22-2-6-4 — Overpayment by employer

(a) If an employer has overpaid an employee, the
employer may deduct from the wages of the employee the amount of
the overpayment. A deduction by an employer for reimbursement of an
overpayment of wages previously made to an employee is not a fine
under IC 22-2-8-1 or an assignment of wages under section 2 of this
chapter. An employer must give an employee two (2) weeks notice
before the employer may deduct, under this section, any overpayment
of wages from the employee's wages.
(b) An employer may not deduct from an employee's wages an
amount in dispute under IC 22-2-9-3.
(c) The amount of a wage deduction made by an employer under
subsection (a) is limited to the following:
(1) Except as provided in subdivision (2), the maximum part of
the aggregate disposable earnings of an employee for any work
week that is subjected to an employer deduction for overpayment
may not exceed the lesser of:
(A) twenty-five percent (25%) of the employee's disposable
earnings for that week; or
(B) the amount by which the employee's disposable earnings for
that week exceed thirty (30) times the federal minimum hourly
wage prescribed by 29 U.S.C. 206(a)(1) in effect at the time the
earnings are payable.
In the case of earnings for a pay period other than a week, the
earnings must be computed upon a multiple of the federal
minimum hourly wage equivalent to thirty (30) times the federal
minimum hourly wage as prescribed in this section.
(2) If a single gross wage overpayment is equal to ten (10) times
the employee's gross wages earned due to an inadvertent
misplacement of a decimal point, the entire overpayment may be
deducted immediately.

Legislative History

As added by P.L.215-1995, SEC.1.