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Maine Overpayment Law Changes

On July 8, 2021, Maine Governor Janet Mills signed legislation (HP 446) lowering the percentage of pay an employer can withhold from an employee who was overpaid. Employers that overpay an employee due to employer error cannot withhold more than five percent of the net amount of any subsequent pay without the employee’s written permission. If the employee quits, the full amount of overpayment can be deducted from any wages due. The timeframe for when an overpayment due to employer error can be recovered is limited to the three years preceding the date of its discovery.

The law is effective October 18, 2021. 

HR Works, Inc., headquartered at 200 WillowBrook Office Park in Fairport (Rochester), New York, with an office in East Syracuse, is a human resource management outsourcing and consulting firm serving clients throughout the United States. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.