Section 19838 Of Article 3. Salary Classification From California Government Code >> Division 5. >> Title 2. >> Part 2.6. >> Chapter 2. >> Article 3.
19838
. (a) When the state determines an overpayment has been made
to an employee, it shall notify the employee of the overpayment and
afford the employee an opportunity to respond prior to commencing
recoupment actions. Thereafter, reimbursement shall be made to the
state through one of the following methods mutually agreed to by the
employee and the state:
(1) Cash payment or payments.
(2) Installments through payroll deduction to cover at least the
same number of pay periods in which the error occurred. When
overpayments have continued for more than one year, full payment may
be required by the state through payroll deductions over the period
of one year.
(3) The adjustment of appropriate leave credits or compensating
time off, provided that the overpayment involves the accrual or
crediting of leave credits (e.g., vacation, annual leave, or holiday)
or compensating time off. Any errors in sick leave balances may only
be adjusted with sick leave credits.
Absent mutual agreement on a method of reimbursement, the state
shall proceed with recoupment in the manner set forth in paragraph
(2).
(b) An employee who is separated from employment prior to full
repayment of the amount owed shall have withheld from any money owing
the employee upon separation an amount sufficient to provide full
repayment. If the amount of money owing upon separation is
insufficient to provide full reimbursement to the state, the state
shall have the right to exercise any and all other legal means to
recover the additional amount owed.
(c) Amounts deducted from payment of salary or wages pursuant to
the above provisions, except as provided in subdivision (b), shall in
no event exceed 25 percent of the employee's net disposable
earnings.
(d) No administrative action shall be taken by the state pursuant
to this section to recover an overpayment unless the action is
initiated within three years from the date of overpayment.
(e) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.