noun
overcompensation
Payment beyond what is owed or warranted.
The audit reveals overcompensation for work the contractor never completed.
Etymology
Over- adds the idea of excess to compensation, which means making up for a loss or paying for something. This sense directly describes a payment larger than warranted.
More examples
- The insurer checks each claim to prevent overcompensation.
- That salary seems like overcompensation for a few hours of work.
- A payroll error results in $500 in overcompensation.
Forms
overcompensation
overcompensate verb — To pay more than is warranted.
Similar words
- overpayment
- Emphasizes payment exceeding an amount due rather than reasonable compensation.