overdraft fees

Is an employer in the state of Maryland legally obligated to pay for an
employee’s overdraft fees? The employee normally has direct deposit and payroll
did not do the direct deposit so they have overdraft fees due to auto-pay set up
on their account.

Asked on September 8, 2017 under Employment Labor Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

If the employer was at fault in causing the autodraft, such as by not processing payroll when it should have been processed, they would be liable for the overdraft fees they caused. But if the employer processed payroll correctly and on time and the problem is the employee has not managed his expenses or payments properly, or kept a reserve to cover bills like this, that is neither the employer's fault nor their responsibility. Employer fault is required to obligate the employer to pay these fees.


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.