Fayetteville Policies and Procedures  329.0 

Salary Overpayments

It is the responsibility of all employees to immediately notify Payroll and their department heads of any salary or other payment errors (including overpayments). Deans, Department Heads, and Vice Chancellors are expected to fully cooperate with and assist Payroll and the Treasurer's Office in efforts to recover salary or other overpayments. Human Resources is responsible for communicating this policy to all employees and will ensure all new employees are informed of this requirement as a part of New Employee Orientation. In addition, this policy shall be included in all faculty and staff handbooks.

It is the policy of the State of Arkansas and the University of Arkansas that an individual may not profit from an error in paying an employee or vendor. Salary overpayments to current employees that are not immediately repaid will be subject to payroll deduction.  Salary overpayments to former employees that are not immediately repaid will be referred to the Treasurer's Office for collection. The University will vigorously pursue collection of all salary overpayments from former employees in the same manner other debts to the University are collected.

To assist departments in identifying possible salary payment errors (including overpayments),  payslips are visible within Workday up to five (5) working days prior to payday. It is the responsibility of the department and employees to immediately notify Human Resources of any payroll errors, including overpayments, prior to payday.  It is especially important for employees to closely examine their payslips in advance at times of transition, such as when a pay increase is due to be implemented.

All employees, managers, and HR partners are responsible for ensuring that termination dates are immediately entered into Workday as soon as it has been determined that an employee is terminating.  To reduce the likelihood of salary overpayments to terminating employees, accrued annual leave will be paid out after the termination of an employee’s employment with the University according to the Payroll Calendar and Fayetteville Policies and Procedures 322.0 as follows:

  • If the termination is entered, approved, and effective between the1st and the 15th of the month, then accrued annual leave will be paid out with the end-of-the-month’s semimonthly payroll.
  • If the termination is entered, approved, and effective on or after the 16th of the month, then accrued annual leave will be paid out with the following month's mid-month semimonthly payroll.

The employee and department are responsible for ensuring the accuracy of the terminating employee's leave record prior to the entry of the termination.   Once an employee has been invoiced for a salary overpayment, the Vice Chancellor for Finance and Administration will determine the final disposition of monies repaid to the university.  Payroll is responsible for deducting salary overpayments to employees from their next payroll. See Board of Trustees Policy 405.2.

Employee overpayments on grants and contracts may not be charged to the grant or contract cost center but will be charged to the host department's cost center.

Payroll is responsible for preparing monthly reports showing current and cumulative salary overpayments by cost center. These reports will assist Human Resources to identify apparent deficiency areas and other training opportunities. These reports will be provided to the Vice Chancellor for Finance and Administration, Deans, and Vice Chancellors.  These reports will also be provided to Arkansas Legislative Audit in accordance with Arkansas Code Annotated § 25-1-124.

Revised July 25, 2022
Reformatted for Web April 28, 2014
May 11, 1999