State employees: overpayment.

Existing law authorizes the state to recoup employee overpayments through methods mutually agreed to by the employee and the state, as specified, and provides the state, when an employee separates from employment prior to full repayment, with the right to exercise all legal means to recover the additional amount owed. Existing law prohibits the state from taking administrative action to recover an overpayment unless the action is initiated within 3 years from the overpayment. This bill would require the administrative action for overpayment to be initiated by written notice to the employee. The bill, for an overpayment that involves leave credits, would make the date of overpayment either the date the employee receives compensation in exchange for leave erroneously credited to the employee or, if the state alleges that the employee obtained the overpayment as a result of fraud, embezzlement, or falsification, the date the state discovers the fraud, embezzlement, or falsification, whichever is later.