Can we as a company correct a mistake of overpaying employees if it has been going on for two years?

Asked 6 months ago - Denver, CO

Their regular wage was not wrong however their prevailing wages were calculated with the fringe benefit for overtime which has happened for 2 yrs. can we changed that?

For example employee johns regular wage is $15 hr, his prevailing wage is $16. + $2.33 fringe, however if he works overtime on a certified payroll job overtime is calculated by 1.5*$16=24+$2.33 fringe.

Attorney answers (2)

  1. Christopher Daniel Leroi

    Pro

    Contributor Level 20

    2

    Lawyers agree

    1

    Answered . What would give you the basis to sue? How were you damaged or what economic damages did you suffer as a result of the overpayment? I don't think that you have "standing" to bring a lawsuit. If anyone is to be contacted it is the CO Department of Labor.

    The information provided in this answer does not create an attorney-client relationship and is not considered to... more
  2. Stephen Clark Harkess

    Pro

    Contributor Level 20

    2

    Lawyers agree

    Answered . With notice, you can certainly correct the pay moving forward.

    As for seeking to recoup pay from the past two years, that probably isn't a good idea. Even if you don't care about the morale of your workforce, which would definitely be destroyed by such a move, there may be arguments of waiver or detrimental reliance that would prohibit recalculating wages that have already been paid.

    You can reach Harkess & Salter LLC by phone or email. Stephen Harkess is an attorney licensed in the state and... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

23,153 answers this week

2,718 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

23,153 answers this week

2,718 attorneys answering

Legal Dictionary

Don't speak legalese? We define thousands of terms in plain English.

Browse our legal dictionary