Can an employer give you your paycheck but instruct you not to cash it due to insufficient funds in their account?

Asked on July 14, 2015 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Legally, no: the employee must be able to cash their paycheck when they are given it. 

Practically, if you believe them (i.e. you don't think they are lying to defraud you in some way), what are you going to do if they do have insufficient funds? Sue them, when by the time the lawsuit comes to court, they will have paid? If you are never paid, then clearly you would sue; but if this just a few days or a week's delay, there really isn't anything you can do as a practical matter.

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