The University of Alabama, Division of Finance and Operations

Indebtedness and Collection Policy

Unit:  Human Resources
Contact: Susan Norton
Title:  Senior Associate Vice President for Human Resources and Chief Human Resources Officer
Effective Date: 6/1/2006
Revision Date: 04/22/2022



The purpose of this policy is to provide information and guidance regarding indebtedness of an employee to the University.


Indebtedness of an employee to the University for which a voluntary repayment plan has not been established will be subject to satisfaction through a payroll deduction process. Prior to implementing such payroll deduction, the University will provide the employee with notice of the amount and duration of such payroll deductions. Indebtedness of an employee to the University may also be satisfied by withholding all or part of any lump sum payment otherwise due to an employee upon separation from the University by retirement, resignation, or termination of employment. Examples of indebtedness may include, but are not limited to, overpayment of wages, failure to return University-issued property, damage to University property, and excessive or unapproved expenditures.


This policy applies to all faculty and staff.


Office of the Vice President of Finance and Operations

Approved by Cheryl Mowdy, Assistant Vice President for Finance and Operations, 04/22/2022