Employee Debt Collection 2.60

Effective Date:  January 1, 2007

Subject:  Employee Debt Collection

Category:  Employment 2.60

1. Purpose

Arkansas State University System (ASU System) employees should promptly settle all debts owed to ASU System institutions.

2. Employee Debt Collection Policy

ASU System shall have the right to offset against any payments due to any employee, including a student employee, those amounts due and owing to the university for expenses or charges incurred.

3. Process

ASU System will set-off against amounts due to an employee from any source those liquidated amounts due and payable by the employee to the university for any reason.  This would include but not be limited to parking charges, parking fines, rent, tuition, fees, and other charges.  The ASU System will then pay the amount remaining to the employee in full satisfaction of his or her wages or the amounts due as follows:

A. If the amounts owed by the employee to the ASU System were the result of monies advanced to the employee, the ASU System may set-off the full amounts owed to the ASU System against all wages or other monies owed to the employee;

B. In all other cases of set-offs against an employee’s wages, the ASU System may only set-off amounts owed the ASU System against those wages which are above the statutory minimum hourly wage; and

C. If the amounts owed to student employees constitute payments for work study or are student loans under a program guaranteed or established by the U. S. Government, any set-off shall be subject to laws and regulations governing those programs.

Subject to the above limitations, an employee, including a student employee, may be given the opportunity to establish a repayment plan for successive set-offs so that the entire amount owed to the ASU System is not set-off on a single occasion; provided, however, that no such plan shall be developed in the instance of any final settlement of accounts, such as where a final check for wages for a terminating employee may be involved.

(Adopted by the Arkansas State University Board of Trustees on January 10, 2007, Resolution 07-01)