Can a payee be held civily or criminally responsible for a check returned to a check cashing facility?
Question Details:
Restaurant issues a non-payroll check to part-time employee for services rendered. Because it is the weekend and banks are closed, payee cashes check at a check cashing facility. Several days later, check is returned to check cashing facility marked "payment stopped". Just a few days later, restaurant goes out of business.
While there can be criminal liability for intentionally passing a bad check, under the circumstances you have posted, that did not happen here. Thus, it is a civil case. However, wages, even part time, can be the responsibility of the owner, even if the corporation is bankrupt. Thus, in addition to suing, you should contact the State Department of Labor.
