Is “Overcompensated” a Scrabble word?

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Yes
OVERCOMPENSATED
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Unavailable

Meaning of Overcompensated

verb
  1. 1.To do an excessive amount in one area in an effort to overcome a perceived lack in another area.

  2. 2.To provide with excessive pay or reward for work performed.