LD 507 – LD 507 – An Act To Amend the Laws Governing Employer Recovery of Overcompensation Paid to an Employee

Summary: This bill amends the definition of “overcompensation” by an employer to include compensation in the form of paid leave. It changes the maximum amount an employer can withhold from an employee’s pay to recover overcompensation from 10% to 5%. It prohibits an employer from recovering more than the amount of overcompensation paid to an employee in the 3 years preceding the discovery of the overcompensation. The bill also specifies that the section of law regarding overcompensation by employers that includes these provisions does not limit or affect an employee’s general civil remedies against an employer.

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