An error in your paycheck can cause a major headache if it leaves you short on cash, so it’s in your best interest to get it resolved right away. It’s in your employer’s best interest, too, because failure to correct certain mistakes in a timely manner can have legal consequences for the business.
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Here’s how to handle paycheck errors and correct any mistakes.
Also see five things frugal people do with every paycheck.
Common Paycheck Mistakes
According to Hourly, a payroll platform for businesses that employ hourly workers, these are some of the payroll mistakes employers commonly make:
- Paying for fewer hours than an employee worked
- Paying an employee at a lower hourly rate than they should receive
- Failing to credit pay increases
- Having a delay with the first paycheck
- Paying less than minimum wage.
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What To Do If You Find an Error
If you do find an error with your paycheck, there are steps you can take to ensure it gets corrected.
First, tell your supervisor about the mistake as soon as you spot it, and provide them with your paystub. They’ll likely escalate it to the human resources department for a correction.
You’ll also want to check your last few pay stubs to make sure they’re correct. If they aren’t, also submit them to your supervisor.
In the case of an underpayment, you should receive the difference in your next paycheck, at the latest. But if you’re overpaid, don’t spend the extra money. Your employer might be allowed deduct it from your next check even if they don’t give you advance notice, according to the legal publisher Nolo. If you’ve already spent it and reimbursing the money would cause a hardship, ask your employer if you can make payment arrangements.
In the event of a discrepancy, where your employer believes your pay to be accurate but you believe there’s an error, submit an explanation in writing, along with any documentation that supports your case.
In a worst-case scenario, where you and your employer are unable to come to an agreement about what you’re owed, you can file a complaint with your state and with the Wage and Hour Division of the U.S. Department of Labor.
Filing a Wage and Hour Division Complaint
The Labor Department has a list of state labor offices on its website, located here. To file a Wage and Hour Division complaint, navigate to this page on the Department of Labor website. You’ll want to have the following information ready:
- Your name, address and phone number
- Your employer’s name, phone number and the location of its headquarters
- Your supervisor’s name
- You role with the company
- The method and frequency of payment — e.g., direct deposit every other week, a paper check weekly, etc.
- Any records you’ve kept that might help your complaint.
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This article originally appeared on GOBankingRates.com: How To Handle Paycheck Errors: A Step-by-Step Guide to Correcting Mistakes
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