State agencies must notify the Comptroller's office of any overpayment of compensation or debt to the state. If the employee has been paid in excess of what he or she has earned, the employee will need to return the overpayment to the Company as soon as possible.Some states require written notice (email is generally fine) to the employee and the employee must agree in writing to the terms of repayment. Notify the employee in writing​​ To start, talk with your employee about the overpayment. 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). Notify Employee: The Agency must immediately notify the employee, in writing, of the amount overpaid and the method of recovery. This chapter deals with state law provisions identifying, establishing, and collecting overpayments. All states have provisions addressing these matters. Overpayment: When a state agency finds it has paid a worker UI benefits the worker was not entitled to.