System Management Payroll and Finance Settlement of Employee Accounts Policy Number: C.E.S.P. 9-6 Date Revised: 4-23-2001 Supersedes: 11-1-1995

Summary:  Statement of Cooperative Extension Service policy authorizing withholding of amounts owed to the organization by an employee from amounts owed to the employee by the Cooperative Extension Service.

The following is adapted from University of Arkansas Board of Trustees Policy 405.2, "Authorization to Offset Amounts Due the University by an Employee Against Amounts Owed by the University to that Employee," adopted June 18, 1982, and revised January 20, 1995.

Cooperative Extension Service shall have the right to set off against amounts due and payable to an employee by the organization those liquidated amounts due and payable by the employee to the Cooperative Extension Service for any reason, with the Cooperative Extension Service then paying the net amount remaining to the employee in full satisfaction of his or her wages or other amount due, as follows:

1. If the amounts owed by the employee to the Cooperative Extension Service were the result of moneys advanced to the employee or misappropriation by the employee of moneys or personal property belonging to the Cooperative Extension Service, the Cooperative Extension Service may set off amounts owed to the Cooperative Extension Service against all wages or other moneys owed to the employee.

2. In all cases of set-offs against an employee's wages, the Cooperative Extension Service may only set off amounts owed the organization against those wages which are above the statutory minimum hourly wage.

3. The Cooperative Extension Service may set off amounts owed to the organization against all sums owed to an employee other than wages.

Subject to the above limitations, the business office may develop with an affected employee a repayment plan over a period of time if it does not involve the final settlement with a terminating employee.