If my employer wrote me payroll checks that I cashed but they later bounced, am I responsible for the money?

hey have done this to several employees, and are now refusing to pay any additional wages owed. I am most worried about being liable for the bounced checks.

Asked on July 19, 2012 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When someone writes checks which bounce, they are responsible for all costs the recipient of the check(s) incurs because of that: e.g. dishonored check fees, overdraft protection fees, etc.. They also have to make good the checks.

HOWEVER, the person who cashed or deposited them is responsible for returning the money to the check cashing place or bank--that's because if the checks were no good, the check casher or bank did not have to pay out money based on them.

So, say you cashed a $500 check which was dishonored at your bank: you have to return $500 to the bank. You could then sue your employer for that $500 if it does not voluntarily make good on it; and if you also incurred a $25 overdraft or bounced check fee of some kind, you could seek that money from your emplolyer as well.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.