Is my employer responsible for my overdraft fees if the direct deposit was their error?
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Is my employer responsible for my overdraft fees if the direct deposit was their error?
They cut me a check for the amount of the paycheck that they had calculated hours wrong. However in the meantime I have over draft fees. Can I legally request they recover those fees to me?
Asked on October 29, 2018 under Employment Labor Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
No, they are not liable. The reason is, the overdraft did not occur simply because one check was shorted; it occured because you do not have or maintain a cushion or reserve of funds in your account to cover any unanticipated shortfalls, etc. The employer is not responsible for you living "paycheck to paycheck," where a delay or short in a single check will cause an overdraft; because they are not responsible for that, they are not liable for the fee.
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