Fayetteville Policies and Procedures  329.0 

Salary Overpayments

It is the responsibility of all employees and Departments to immediately notify both Payroll Services and their respective 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 Services 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. When an employee is overpaid salary, Payroll Services will initiate procedures to collect the overpayment.  Salary overpayments to current employees that are not immediately repaid will be subject to payroll deduction.  Salary overpayments can be deducted from an employee’s next payroll or, subject to the approval of University officials, the employee may establish a repayment plan for successive offsets so that the entire amount owed to the university is not offset on a single occasion.  See Board of Trustees Policy 405.2  Salary overpayments to former employees that are not immediately repaid will be invoiced and collection pursued by the Treasurer's Office. 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 and employees in identifying possible salary payment errors (including overpayments),  pay slips are visible within Workday up to five (5) working days prior to payday. It is the responsibility of the department and employees to notify Human Resources of any payroll errors, including overpayments, as soon as detected.  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.  The employee and department are responsible for ensuring the accuracy of the terminating employee’s leave record prior to the entry of the termination.  Accrued annual leave for terminating employees is according to Fayetteville Policies and Procedures (FPP) 322.0.

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.

  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 Services is responsible for deducting salary overpayments to employees from their next payroll or establishing repayment plans for successive offsets so that the entire amount owed to the University is not offset on a single occasion. See Board 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 Services 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. Summary salary overpayment data is also provided to Arkansas Legislative Audit in accordance with Arkansas Code Annotated § 25-1-124.

Disputes

Consistent with the University’s authority under Board Policy 405.2 to recover salary overpayments, employees may request a limited review solely to verify the factual accuracy of the overpayment calculation or to identify an administrative error in the proposed repayment schedule.  Any request for review must be made within 30 days of receiving notice of an overpayment. This review does not provide an opportunity to contest the University’s obligation to recover overpayments, as individuals may not retain compensation paid in error under FPP 329.0.  Requests must be submitted in writing to the Financial Affairs Payroll Services office, and must identify the specific factual error(s) asserted to exist.  The review will take into account relevant documentation  provided by the employee and any relevant University records, with a final determination by the Chief Financial Officer or designee, whose decision is final.  Requests must be made in good faith and not be used to delay repayment.

Revised March 16, 2026
Revised September 9, 2024
Revised July 25, 2022
Reformatted for Web April 28, 2014
May 11, 1999