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Bounced payroll checks? Make good on them right away

by on
in Small Business Tax Deduction Strategies

These are tough times, and sometimes businesses run short on cash. Or a banking mistake may result in fees that cause other checks to bounce.

If that happens to payroll checks, make every effort to fix the problem as soon as possible. Not only are employees entitled to their pay, some have resorted to suing their employers for bouncing paychecks.

Recent case: Warren Easterling sued his employer when two paychecks bounced. He alleged, among other things, harassment.

But the company showed the court that it made good on the checks as soon as it realized they had bounced. Therefore, the court dismissed the case. (Easterling v. Ameristate Corporation, No. 23980, Court of Appeals of Ohio, 2nd Appellate District, 2010)

Final note: Of course, this case cost the employer thousands in legal fees. Payroll checks come first.

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