What do I need to do if my employer writes me payroll checks on an account that has unavailable funds?

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What do I need to do if my employer writes me payroll checks on an account that has unavailable funds?

Asked on May 1, 2011 under Employment Labor Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Writing paychecks against an account with unavailable funds is, at a minimum, a violation of wage and hour laws and of the implicit contract between employer and employee. Therefore, you could sue to recover the money owed you, as well as any other out-of-pocket (e.g. overdraft) fees or costs have incurred. You could also contact the labor department and see if they will help you.

If this was done knowingly (e.g. it wasn't just bad timing or bad bookkeeping), then this might also be a criminal act (you can't deliberately pass bad checks), in which case the employer could potentially also face criminal liablity as well as civil. In this case, you could also report the matter to the police.


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