Implies that the job doesn't fully utilize the applicant's skills, which may lead to dissatisfaction. He was overqualified, fearing he might soon lose interest in the routine tasks.
Pro Tip 2/3
Undervalued Feeling
Can suggest that the employer worries the applicant may feel underappreciated or bored. The team worried Jane would feel overqualified and undervalued in the entry-level position.
Pro Tip 3/3
Salary Expectations
Employers may assume that overqualified candidates expect higher pay than offered. Mark was overqualified and the company couldn't meet his expected salary.