The tab on $147 in unclaimed wages? Almost $1.4 million — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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The tab on $147 in unclaimed wages? Almost $1.4 million

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in Office Management,Payroll Management

Yes, you read that correctly. Delaware is attempting to collect $1,388,573.97 from a Tennessee company that failed to escheat one $147 unclaimed paycheck to it. The company is asking a federal court to throw out the results of Delaware’s unclaimed property audit, and with it, that whopping bill.

While it’s way too early to guess how this case will be resolved, it serves as a cautionary tale to all companies that incorporate in Delaware, which most do. (Temple-Inland, Inc. v. Cook, No. 1:13-cv-00654-SLR, D.C. Del., 2014)

Abandoned property law. Escheat is a legal process requiring you to remit unclaimed property to a state treasurer. Paychecks become unclaimed after they’re outstanding for a statutory holding period; the customary period is one year.

All state laws require you to perform a due diligence by attempting to contact payees at their last known addresses. Once the statutory holding period is met, and your contacts ha...(register to read more)

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