An Act To Amend the Laws Governing Employer Recovery of Overcompensation Paid to an Employee
Sec. 1. 26 MRSA §635, as enacted by PL 1989, c. 804, is amended to read:
§ 635. Overcompensation by employer
If an employer with 25 or fewer employees knows of the limitation established by subsection 2 and violates this section, that employer forfeits any claim to the overcompensation. Employers An employer of 25 or fewer employees who do does not know of the limitation established by subsection 2 and who violate violates this section shall return all money withheld in excess of that permitted under subsection 2 within 3 days of written or oral demand by the employee, or forfeit forfeits any claim to the overcompensation.
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.