CA AB1753

Requires the state to initiate administrative action to recover employee overpayments by written notice to the employee within three years from the date of overpayment.

For overpayments involving leave credits, establishes the date of overpayment as either when the employee receives compensation for erroneously credited leave or, if fraud/embezzlement/falsification is alleged, when the state discovers it, whichever is later.

Maintains existing recoupment methods including cash payments, payroll deductions (at least covering the pay periods in which the error occurred), or adjustment of leave credits or compensating time off by mutual agreement.

Caps salary or wage deductions at 25 percent of the employee's net disposable earnings, except when withheld from final separation payments.

Allows memoranda of understanding with employee unions to supersede these provisions, except those requiring fund expenditure must be approved by the Legislature in the annual Budget Act.