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Ask the Expert: Can Employees Be Held Legally Accountable for Paying Overpaid Wages Back?

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Question: Is there a statute of limitations regarding when employers must inform employees of an overpayment of wages, and can employees be held legally accountable for paying the overpayment back?

Answer: The Federal Labor Standards Act (FLSA) doesn’t address how long an employer has to recover overpaid wages. In the absence of federal law, state law governs the statute of limitations for collecting overpayment of wages (if such limitations even exist) and how an employer must go about recovering such overpayments.

Idaho law doesn’t provide a deadline for when an employer may recover overpaid wages from an employee.

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