Is my employer responsible for my overdraft fees if the direct deposit was their error?

UPDATED: Oct 1, 2022

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Is my employer responsible for my overdraft fees if the direct deposit was their error?

They cut me a check for the amount of the paycheck that they had calculated hours wrong. However in the meantime I have over draft fees. Can I legally request they recover those fees to me?

Asked on October 29, 2018 under Employment Labor Law, Indiana


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

No, they are not liable. The reason is, the overdraft did not occur simply because one check was shorted; it occured because you do not have or maintain a cushion or reserve of funds in your account to cover any unanticipated shortfalls, etc. The employer is not responsible for you living "paycheck to paycheck," where a delay or short in a single check will cause an overdraft; because they are not responsible for that, they are not liable for the fee.

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 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.

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