SECTION 5.40 PAY CORRECTIONS
Last Update: 4/11
Agencies have the responsibility to ensure that employees are paid properly. All pay errors must be reviewed and corrected.
Steps in Correcting Pay Errors [11 IAC 53.4(7)]
An employee’s pay shall be corrected if it is found to be in violation of the Iowa Department Administrative Services administrative rules or a collective bargaining agreement. If the correction is the result of an error of omission, the pay may be corrected within twelve (12) pay periods following the date the employee’s pay was incorrectly set or the transaction that should have occurred was omitted. Corrections shall be made on the first day of the pay period.
An employee may receive retroactive pay for a period of up to 90 calendar days preceding the date the error was corrected or the omission occurred.
1) Review the facts to determine what action(s) should have taken place versus what action(s) took place.
· Employee's personnel file maintained by the agency's personnel assistant
· Employee’s timesheet
· Employee’s warrant history
· Personnel assistant
· Employee's supervisor
· Personnel officer
· Administrative rules
· Applicable collective bargaining agreement
· Classification and pay plan
2) If a pay error has occurred, determine what corrective action, if any, should occur. Corrections of pay errors are either nondiscretionary or discretionary:
A. Nondiscretionary errors are corrections in pay that agencies are required to correct regardless of the time that has elapsed. Nondiscretionary errors include:
· Automatic pay increases for contract-covered employees
· Pay grade revisions
· Pay adjustments mandated by legislation
· Certain promotional pay increases
· Shift differential
· Call back pay
· Standby pay
· Med passer pay
· Holiday premium pay
· Comp, holiday comp, or banked holiday pay
· FLSA-required premium overtime
B. Discretionary errors are corrections in pay that the agencies have an option to correct. The correction must be made within 12 pay periods following the date of error. The errors include:
· Advanced appointment rates for new employees
· Adjustment of current employees’ pay based on an advanced appointment rate
· Pay increases that are not automatic
· Certain promotional pay increases
· Additional step under certain intra-agency transfer provisions
· Salary upon reinstatement
· Employees for whom the agency wishes to rescind a termination under certain circumstances
· Appointments when the agency fails to submit a “Report of Personnel Action” form before the expiration date of a certificate
3) If it is determined that the pay error is discretionary and will not be corrected, notify the personnel assistant and the employee of the decision. Employees may have the right to grieve the decision.
4) If it has been determined that the pay error is nondiscretionary and will be corrected, notify the personnel assistant and the employee of the decision.
Corrections of pay errors other than those listed are handled on a case-by-case basis. Contact the personnel officer assigned to your agency. Corrections that would require the backdating of a "Position Change Request" form (M-5) in the Human Resource Information System (HRIS) will not be allowed.
Correction of Pay Errors Involving Overpayment of Wages [11 IAC 53.4(7)]
If an error results in an employee being overpaid wages, except for FICA, state and federal income taxes and IPERS contributions shall be collected. Also, premiums for health, dental and life insurance benefits that have been underpaid shall be subject to collection. The overpayment must be collected in one of the following ways:
· The employee can choose to repay the overpayment in a lump sum.
· The overpayment can be deducted from succeeding pay periods not to exceed the number of pay periods during which the overpayment occurred.
· The appointing authority may submit an alternate repayment plan to the Director of the Iowa Department of Administrative Services, including a written schedule explaining the method by which the money will be recovered. The Director of the Iowa Department of Administrative Services will notify the appointing authority of the decision on the alternate repayment plan.
If the employee terminates before the full amount is repaid, then the amount remaining will be deducted from wages, vacation payout, applicable sick leave payout, and/or any wage correction payback from IPERS.