HI HB164

Requires disbursing officers to notify employees in writing within 60 days of determining a salary or wage overpayment indebtedness, provided the determination and notice occur within two years from the date of overpayment.

Establishes tiered payroll deduction limits based on employee gross income: employees earning less than $2,000 per pay period have a minimum $50 deduction (or 5% of compensation), those earning $2,000-$3,000 have a minimum $75 deduction (or 15% of compensation), and those earning more than $3,000 have a minimum $100 deduction (or 25% of compensation).

Allows employees and appointing authorities to agree to alternative deduction amounts that meet the minimum thresholds for the employee's income bracket.

Permits employees and appointing authorities to mutually agree to offset remaining indebtedness using the employee's leave or compensatory time credits that would otherwise be paid upon separation.

Takes effect July 1, 2050.