If my employer wrote me payroll checks that I cashed but they later bounced, am I responsible for the money?

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If my employer wrote me payroll checks that I cashed but they later bounced, am I responsible for the money?

hey have done this to several employees, and are now refusing to pay any additional wages owed. I am most worried about being liable for the bounced checks.

Asked on July 19, 2012 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

When someone writes checks which bounce, they are responsible for all costs the recipient of the check(s) incurs because of that: e.g. dishonored check fees, overdraft protection fees, etc.. They also have to make good the checks.

HOWEVER, the person who cashed or deposited them is responsible for returning the money to the check cashing place or bank--that's because if the checks were no good, the check casher or bank did not have to pay out money based on them.

So, say you cashed a $500 check which was dishonored at your bank: you have to return $500 to the bank. You could then sue your employer for that $500 if it does not voluntarily make good on it; and if you also incurred a $25 overdraft or bounced check fee of some kind, you could seek that money from your emplolyer as well.


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