2. Deductions for overpayments are limited to 12.5 percent of the gross wages (provided the deduction does not reduce wages below the minimum wage rate). Use this model communication to draft a notice to an employee regarding necessary actions to correct overpayment of the employee's salary.This file contains a sample letter for notifying terminated employees about overpayment issues. The employer shall provide the employee with notice of the intent to commence the deductions to recover 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). The salary overpayment resulted because .