FCA employees told to return overpayment of company aid after receiving COVID-19 relief payments

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Posted at 9:19 PM, May 27, 2020
and last updated 2020-05-28 11:36:19-04

DETROIT (WXYZ) — Fiat Chrysler is telling employees to return hundreds of dollars of company-paid supplemental unemployment benefits after the company says workers were overpaid.

Since some employees received $600 in unemployment through the CARES Act and on top of that, company-paid supplemental unemployment benefits as per the terms of the collective bargaining agreement, they're being asked to return a portion of those funds.

The employees who the company says were overpaid received an average of about $500, which is expected to be returned either by lump sum or through payroll deductions of no more than $100 per pay period until paid off.

FCA says many employees have already returned the overpayment in lump sums.

Read the FCA statement below.

FCA U.S. hourly employees on layoff are entitled to state unemployment benefits and company-paid supplemental unemployment benefits as per the collective bargaining agreement.

The $600-a-week in economic support provided as part of the Federally approved CARES Act is an offset to the company-paid supplemental unemployment benefits an employee may be entitled to receive. Because the CARES Act benefit was paid retroactively, some FCA employees received an overpayment of their supplemental unemployment benefits, averaging about $500, which they are now being asked to repay.

Employees have the option of repaying these overages either in a lump sum, which many have already done, or through payroll deductions of no more than $100 per pay period until fully paid.

The UAW responded to the situation saying, “This is a contractual matter and the UAW is closely monitoring how it is being applied. Any member who thinks that they have received an overage letter in error should talk to their local union representative to look into these questions.”

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