You must complete and return the Application for Overpayment Waiver (DE 1446UI) to be considered for a waiver. California Labor Code 221 is a short part of California's labor code that simply states employers may not take wages they have paid their employees back.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. For example, if you overpaid the employee, explain the mistake and communicate that the employee is not entitled to the money. The majority of employees are considered 'employed at will'. They or their employer can terminate them with or without reason (save for a few protected cases). IMPORTANT: If we told you in the overpayment notice that you are responsible for a family member's overpayment, complete Section 3. Otherwise, go to Section 4.