Overpayment disaster!

[Dub Brown Eye]

I go into work yesterday, and get called into the office. Turns out they have been paying me the wrong rate since July. Now they are trying to figure out how much they can take back. My union steward thought they could only go back 90days, but couldn't find the language in the central states book. Does anyone know what the ruling is on a matter of this magnitude?

It all starts as I was a full time driver,, with full progression (10years), and decided to take the clerk position that opened up inside the building. I never really looked at my checks in detail, only to check if they were in my bank account (direct deposit) each week. Since I'm on a straight 40hr work week, my checks were always the same. No need to check. Now, I'm already getting $300 less a week, so I figured my scale was adjusted. Then yesterday they inform me that it was not, by some clerical error it was never changed , either in payroll, or management, or wherever. Now they say I have been receiving $5 an hr more than I was entitled, and they are trying to figure out what amount I owe them.

This is in no way my fault, or responsibility. I was never informed upon taking this new job of a pay rate difference, nor explained anything about the position. In fact, they were so mad I took the job (I was a good bonus driver) that they made me wait 6 weeks (and file a grievance) to start the job. Then I was trained by a part time person who was covering. So I had no knowledge that they were screwing up, but now I'm into it for like 10 grand. What is anyone's suggestion, or does anyone know what the definite answer is on this situation? Thanks all!

 

[cachsux]

"No way my fault or responsibility" that you took a position that you had no clue of it's duties or pay?

It never crossed your mind to maybe,just maybe, ask?

 

[UpstateNYUPSer(Ret)]

90 days.

 

[oldngray]

Buy your center manager a pizza and a 6-pack and maybe he will call it even.

 

[Dub Brown Eye]

"No way my fault or responsibility" that you took a position that you had no clue of it's duties or pay?

It never crossed your mind to maybe,just maybe, ask?

I knew it would be less $ but when I asked about it they said top inside rate, which is porter@ $31hr (roughly). So I never questioned it again from the start. But now they are saying its article22 & should only be 27.50. I knew the duties involved which is why I took the job. I've been an employee for almost 20years.

My concern is their payroll,finance,labor manager, & my center manager are all looking into it. I'm thinking it never got changed because they still forced me to drive until sep. & they didn't wanna fight with me. They like to change #'s & classifications quite a bit around here to suit their paper trail.

But regardless, for my own finances, I need to know how much, if any of this I am responsible for. Its their payroll mistake.

Upstate, are you sure its 90, & if so do you have a page # on where to find in contract? Thanks again everyone.

 

[oldngray]

I think its either 30 or 90 days but not sure. And since UPS screwed up you might be able to grieve it but I wouldn't hold my breath about that.

 

[brown bomber]

I was told years ago,..that payroll (accounting) doesn't make mistakes. I was overpaid 3 or 4 times,..one time it was 10 hrs. of overtime, I reported the errors ASAP...never heard anything regarding these issues

 

[BakerMayfield2018]

. Could be a worse "payroll glitch"!

 

[Kae3106]

This probably wasn't caused by Payroll. It was caused by the center not telling HR to change your job classification. As soon as HR does that, a report goes to Payroll and they would have changed the pay rate to the appropriate rate in the system. There is a weekly report that shows employees whose rates do not match their job classifications so Payroll would have noticed.

If it was just caught, it may have been picked up on the audits they are doing for the new pay rates and retro calculation.

First, find out from Labor exactly how far back they can go and exactly when they found the error because that's when the clock starts ticking. If they continued to mis-pay you after they discovered the error, that's on the company, IMO.

If they insist that you pay back the funds, you can stretch it out over a reasonable time frame. Make sure you keep track of how much you have repaid. Here's the real problem, though...you have crossed tax years if they go all the way back to July. For a prior year overpayment repaid in the current year, they can ask you to repay the gross amount, not the net. Then you can deduct the repaid amount on your 1040 the next year and will not be given a 2013 W-2C since you had use of the funds in 2013.

If they can only go back 90 days, it's much better for you from a tax perspective. If the overpayment and repayment happened in the current year, they should adjust your current year wage and tax totals to reflect the repayment. Also, you can request a payroll history that shows all hours and rates paid. Get that and do your own calculation.

 

[30yearstolife]

I knew it would be less $ but when I asked about it they said top inside rate, which is porter@ $31hr (roughly). So I never questioned it again from the start. But now they are saying its article22 & should only be 27.50. I knew the duties involved which is why I took the job. I've been an employee for almost 20years.

Make sure you check with the steward to make sure that it actually was an article 22 bid you signed. There is language in many areas to protect existing full time positions inside the hubs. I would not automatically assume management is being completely on the up and up. Going forward, you may be making a great deal more money if indeed it was not an article 22 you signed. Ask you steward to get a hold of the original bid.

In the meantime, don't sign any authorization statement allowing UPS to recover wages until you are sure that the repayment schedule and amount (if any) is fair. There are Federal and State laws which govern these situations in addition to any contract language or past practice....