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Company wins its $1.3 million unclaimed property suit

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in Office Management,Payroll Management

How do you increase state revenues without raising taxes or cutting services? You can ramp up enforcement of your unclaimed property laws. Delaware, being the state in which many businesses incorporate, has been particularly dependent upon this revenue. Not anymore.

Delaware has settled its attempt to collect $1.3 million from a Tennessee company that failed to escheat one $147 unclaimed paycheck to it. At the same time, a federal trial court ruled that the state’s behavior during this company’s unclaimed property audit “shocked the conscience” of the court. (Temple-Inland, Inc. v. Cook, No. 1:13-cv-00654-SLR, D.C. Del., 2016)

Abandoned property law. Paychecks that remain unclaimed, usually for a one-year period, must be sent to a state treasurer’s office under a process called escheat. You escheat to the employee’s state of residence or if, after performing a due diligence, you still don’t know the employee’s current addres...(register to read more)

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