What can be done about a company that writes checks without funds to pay it’s contractors?

UPDATED: Sep 30, 2022

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What can be done about a company that writes checks without funds to pay it’s contractors?

My dad has an end dump trailer that he contracts out to various companies. Whenever he does work for a particular company, they always write him checks that don’t have funds. This leads to him having to go back and forth between the company and the bank trying to get paid so that he can keep working. The longest he has gone without getting payment from this company has been a month. He’s talked to other drivers that are directly employed by the company and they also have the same issue. Is it legal for a company to withhold payment from another company?

Asked on January 18, 2017 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, it's not legal. He can therefore sue for any amounts not paid; for any additional costs he incurs (e.g. NSF fees); and if he believes this was done deliberately (intentionally passing a bad check, as opposed to just bad bookkeeping), he could file  a police report and look to press charges for passing a bad check. But those are effectively his options--apart from his main option of refusing to work with/for this company again.

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