Majority of the states are good as long as you don't take employees' wages below minimum wage. The law does allow for an employee to voluntarily agree to repayment of any overpaid wages as long as the employee's wages are not reduced below minimum wage.This file contains a sample letter for notifying terminated employees about overpayment issues. Thus, deductions for overpayments made in a final paycheck violate §203 because they deprive the employee of all final wages. The First Notice to separated employees is Letter A (Addendum A). d. The First Notice to the employee must include the following: i. Payroll overpayments occur when compensation that is not owed to the employee is paid in error. Use the Termination Checklist to identify the required and recommended forms to fill out during the termination process. If you were overpaid, you will receive a written notice in the mail.