We have been paying a terminated employee salary continuance for 3 pay periods. In the 2nd pay period a payroll error was made by keying in gross pay as hours which resulted in a net overpayment of over $32,000. The deposit was made on July 30th and the error was discovered on August 7th. The employee was contacted by phone and advised of the error and that the employer was going to formally advise them in writing requesting repayment. We were unsuccessful in trying to reach the employee by phone a second time and did not receive a response to the voicemail message left. If the employee does not respond or refuses to repay the amount, what possible recourse does the employer have to recover the overpayment? Also, there is one more final salary continuance amount scheduled for deposit on August 13th. Is the employer allowed to deduct this final pay to reduce the overpayment?