807 Recovery of Overpayments

Georgia State Seal

Georgia Department of Human Services
Human Resources Policy #807

Recovery of Overpayments

Release Date:

January 19, 2005

Revised Date:

Next Review Date:

November 30, 2024

Active or inactive employees of the Department of Human Services, who receive erroneous funds, are required to make full restitution to the department in accordance with the methods described in this policy.

Section A: Types of Overpayments

An employee is considered overpaid when one of the following actions occurs, and the Office of Human Resources receives notification after payment is made:

  1. Employee is on unpaid leave of absence,

  2. Employee terminates state service,

  3. Employee transfers out to another state agency or a non-state payroll entity, e.g. County DFCS Office,

  4. Delay in deactivating an employee’s temporary salary adjustment, or any other time-limited payment,

  5. Other payments to the employee that are unauthorized.

Section B: Notification of an Overpayment

When a paycheck overpayment occurs, the Office of Financial Services or DFCS Regional Accounting will send written notification to active employees providing the repayment process start date.

  1. Inactive employees shall be given thirty (30) calendar days, from the date of the written notification (See attachment #1 and #2), to respond.

  2. Active employees shall be given ten (10) calendar days from the date of written notification to respond to the Office of Financial Services or DFCS Regional Accounting. Employees who fail to respond by the deadline date will be denied consideration of an installment repayment schedule and are subject to a one-time deduction for the full amount owed.

Section C: Repayment Process

Active and inactive employees will have the option to establish a repayment arrangement when a payment of the amount due would create a financial hardship and there is no indication of fraud, misrepresentation, fault, or lack of good faith on the part of the employee. The size and frequency of installment payments, if deemed appropriate, should bear a reasonable relation to the size of the debt and the ability to pay.

  1. Office of Financial Services or DFCS Regional Accounting will establish the repayment schedule (See attachment #2) for active and inactive employees.

    1. Repayment Period - The repayment period for all payroll overpayments is equal to the same number of pay periods the overpayments were issued to the employee. For example, if a payroll overpayment was issued to an employee for 4 pay periods, the repayment period is 4 pay periods.

  2. Deductions for salary offset for active employees will be made from regular earnings, not to exceed 25% of gross pay, except when a greater percentage may be deducted upon employee’s written consent.

    1. Repayment Amount - The amount to be repaid for all payroll overpayments is equal to the same amount paid to the employee each pay period. For example, if a payroll overpayment was issued to an employee for $100.00 each pay period for 4 pay periods, the repayment amount is $100.00 each pay period for 4 pay periods.

  3. Unused accrued annual leave will offset the overpayment of an inactive employee. If the dollar amount of the accrued annual leave does not satisfy the debt, the former employee will be required to submit payment for the difference.

  4. When accrued annual leave is sufficient to cover the full debt of an inactive employee, any remaining annual leave will be processed and released to the inactive employee.

  5. If an active employee resigns or state service otherwise ends before collection of the amount of the indebtedness is completed, a deduction shall be made from subsequent payments, e.g. last regular earnings, or annual leave payout.

For additional information or assistance, please contact the Office of Financial Services or DFCS Regional Accounting.