Is it legal for an employer to bounce paychecks?
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Is it legal for an employer to bounce paychecks?
My husband’s company has had paychecks bounce on 5 different occasions.
Asked on August 10, 2011 Washington
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
1) Employees need to be paid, so even if a check does bounce, the company *still* needs to get him or her the money as soon as possible.
2) If the employee incurred any costs or expenses as a result of the bounced check (e.g. late fees or interest charges from not being able to make some payment on time; a bounced check charge; etc.), the employer would be liable for those costs, too.
3) If bouncing the checks is a deliberate or knowing act (e.g. issuing checks while knowing there is not enough money to cover them in the account), that could even result in criminal liabilty as well as the civil liabilty described above.
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