In Iowa when you have a payroll check bounce, and it takes 5 or 6 days before the employer makes the check right. Does the employer owe more then the amount of the check to the employee ?

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In Iowa when you have a payroll check bounce, and it takes 5 or 6 days before the employer makes the check right. Does the employer owe more then the amount of the check to the employee ?

In the last year and a half I had a few payroll checks bounce from a employer. Each time it took anywhere from 5 to 7 days before the paychecks were made right. I did get the 12 bank fee back. Was more owed to me I didn’t get ?

Asked on June 1, 2018 under Employment Labor Law, Iowa

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Other than the bank fee (which they evidently paid), they do not owe you any more for the delay--or to be more technical, they would owe you the current savings account interest rate on that amount of money for that amount of time, since you were deprived of 5 - 7 days of possible investment of it. Of course, since interest rates in 2017 - 18 on savings accounts have been around 1.75% per year, if the employer delayed sending you, for example $2,000 for 6 days (which is 1/60th of a year), the interest  on that would be $2,000 x 0.0175 x 1/60 = $0.58 (58 cents)...hardly worth taking action about. They only owe you for the actual loss you incurred; i.e. for the loss of use of your funds. That loss is so trivial it may as well as $0.


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