What is my rights if my payroll checks keep bouncing?

UPDATED: Sep 30, 2022

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What is my rights if my payroll checks keep bouncing?

For the last few weeks every time I get a payroll
check from work it bounces and I just found out
that 20 other people’s did to even some of the
new checks they are giving us are not going
thur keep tell us the money is going to be in
their the next day the owner is getting a divorce
and is splitting of the company

Asked on October 19, 2016 under Employment Labor Law, Tennessee


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You can sue the employer (the LLC or corporation, if the business is an LLC or corporation; the owner[s] of the business otherwise) for your pay and also for other costs (e.g. NSF or bounced check fees; late payment penalties; etc.) you incur due to the checks bouncing. You should sue *now*, before all the money is gone or tied up: if he's divorcing and "splitting up the company," it may be that the business is going out of business, or he's trying to move money out and hide it from his spouse, or everything is being taken up by what he needs to pay his spouse or legal bills, etc. Sue right away, and in the context of the lawsuit, try to file a motion to prevent him from moving money, etc. out of the company to preserve it for you. If 20 or so employees have had this problem, some or all of you should jointly hire an attorney to take the case and help you--a lawyer will know how to move this case along quickly and file the appropriate motions to maximize the chance some money will remain for you.

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