LD 610 LR 965(02)
An Act To Amend the Laws Governing Employer Recovery of Overcompensation Paid to an Employee
Fiscal Note for Bill as Amended by Committee Amendment " "
Committee: Labor and Housing
Fiscal Note Required: Yes
Fiscal Note
Potential current biennium cost increase - All funds
FY 2021-22 FY 2022-23 Projections  FY 2023-24 Projections  FY 2024-25
Net Cost (Savings)
General Fund $42,817 $57,644 $59,404 $61,220
General Fund $42,817 $57,644 $59,404 $61,220
Fiscal Detail and Notes
This bill includes ongoing General Fund appropriations of $42,817 in fiscal year 2021-22 and $57,644 in fiscal year 2022-23 to the Regulation and Enforcement program within the Department of Labor for one half-time Labor and Safety Inspector position and related All Other costs associated with enforcing the limitation on the  recovery of overcompensation paid to an employee in error.  This estimate assumes an effective date of October 1, 2021.
Reducing the maximum amount an employer may withhold from an employee's pay to recover overcompensation from 10% to 5% and prohibiting an employer from recovering more than the amount of overcompensation paid to an employee due to an error by the employer in the 3 years preceding the discovery of the overcompensation may mean recovery in some cases is never accomplished, increasing costs to all employers.  It is not possible to estimate the amounts of future overcompensation that may never be recovered by state departments and agencies because of this bill.