Can my employer issue paycheck but insist it not be cashed or deposited yet?
My former employer issued four paychecks (biweekly) in a row to me, but insisted that i did not cash them due to insufficent funds. As of October 2009, I got a new job, due to the money problems with my previous employer. I stupidly gave back two of my paychecks because i work on commission, and felt that i did not earn those checks. It is now January, and I am still being told by my old boss that I cannot cash the paychecks that he issued me in August and September 2009. I have taken them to the bank his account is with to attempt to cash them, and was told that they cannot be cashed due to insufficent funds. My old boss refuses to answer or return my phone calls to resolve this matter. Now what?
3 answers | asked Jan 7, 2010 08:51 AM [EST] | applies to Pennsylvania
Answers (3)
Before I respond to your inquiry, I must state that we have not spoken, I have not reviewed the relevant documents and facts, and I do not represent you. Therefore, my discussion below is not a legal opinion, but is informational only. Finally, my discussion applies only to issues to which Pennsylvania or Federal law apply, unless otherwise specified.
That being said, the answers below are good ones. Based on the facts as you present them, you are likely to prevail on a claim for wages. However, you may be facing an issue regarding whether you 'earned' monies on the old paychecks if you returned them. Under the Wage Payment and Collection Law, an employee may not waive their right to wages, so this issue may be moot - again, depending on the facts. I would need to know more facts relating to that issue before I could give you my opinion on it.
If you are in Philadelphia, you can bring a claim in magisterial district court - i.e. 'small claims court' - if the amount is less than $12,000. Small claims courts in the rest of the Commonwealth have an $8,000 limit.
The bad checks can also lead to potential fraud claims and criminal charges against the employer and/or the person that signed or authorized them to be issued.
You should send your boss a letter, Federal Express, stating that if you are not paid within 10 days that you will file a claim against him. If the matter is more than $8,000, or $12,000 in Philadelphia, you should call an attorney. If it is less than those amounts, and since the Wage Payment and Collection Law allows you to collect attorneys' fees AND a 25% penalty on unpaid wages, you likely can find an attorney to assist you in small claims court.
The biggest issue will be whether there is any money to collect, or whether your employer AND the person who didn't pay you (likely your old boss) have any money.
If you don't want to go that route, you can file a complaint with the Bureau of Labor Law Compliance, at http://www.portal.state.pa.us/portal/server.pt?open=514&objID=553573&mode=2. There is no attorney fee associated with this process, but the Bureau's job is to enforce the law, not to make you whole, and when you get the Bureau involved, you give up your rights to them - they can settle your claim for less than you like without your input. They may also just kick it back to you.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Jan 7, 2010 12:30 PM [EST]
That being said, the answers below are good ones. Based on the facts as you present them, you are likely to prevail on a claim for wages. However, you may be facing an issue regarding whether you 'earned' monies on the old paychecks if you returned them. Under the Wage Payment and Collection Law, an employee may not waive their right to wages, so this issue may be moot - again, depending on the facts. I would need to know more facts relating to that issue before I could give you my opinion on it.
If you are in Philadelphia, you can bring a claim in magisterial district court - i.e. 'small claims court' - if the amount is less than $12,000. Small claims courts in the rest of the Commonwealth have an $8,000 limit.
The bad checks can also lead to potential fraud claims and criminal charges against the employer and/or the person that signed or authorized them to be issued.
You should send your boss a letter, Federal Express, stating that if you are not paid within 10 days that you will file a claim against him. If the matter is more than $8,000, or $12,000 in Philadelphia, you should call an attorney. If it is less than those amounts, and since the Wage Payment and Collection Law allows you to collect attorneys' fees AND a 25% penalty on unpaid wages, you likely can find an attorney to assist you in small claims court.
The biggest issue will be whether there is any money to collect, or whether your employer AND the person who didn't pay you (likely your old boss) have any money.
If you don't want to go that route, you can file a complaint with the Bureau of Labor Law Compliance, at http://www.portal.state.pa.us/portal/server.pt?open=514&objID=553573&mode=2. There is no attorney fee associated with this process, but the Bureau's job is to enforce the law, not to make you whole, and when you get the Bureau involved, you give up your rights to them - they can settle your claim for less than you like without your input. They may also just kick it back to you.
If you would like to discuss this matter further, please feel free to contact me at the below address(es) or number.
/Christopher E. Ezold/
Nancy O'Mara Ezold, P.C.
One Belmont Avenue,
Suite 501
Bala Cynwyd, PA 19004
(610) 660-5585
Cezold@Ezoldlaw.com
www.ezoldlaw.com
posted by Christopher Ezold | Jan 7, 2010 12:30 PM [EST]
The Fair Labor Standards Act - the federal counterpart to Pennsylvania's Wage Payment and Collection Law may apply as well, depending upon the characteristics of the business. In practical terms, it may be difficult to find a lawyer to take your case because of the amount of money involved.
You can bring suit in magisterial district court if the amount in controversy is less than $8,000.00, and the process is generally simpler than county or federal court. You can find the appropriate court here: http://www.aopc.org/T/SpecialCourts/MDJSearch.htm
posted by George Barron | Jan 7, 2010 09:49 AM [EST]
You can bring suit in magisterial district court if the amount in controversy is less than $8,000.00, and the process is generally simpler than county or federal court. You can find the appropriate court here: http://www.aopc.org/T/SpecialCourts/MDJSearch.htm
posted by George Barron | Jan 7, 2010 09:49 AM [EST]
What's next is you can sue your ex-boss under the PA Wage Payment and Collection Law (WPCL), which requires PA employers to pay their PA employees the wages they have earned. Period. Under this law, if the company doesn't or can't pay, the individual manager(s) who participated in the decision not to pay can be held personally liable for the money.
posted by Mardi Harrison | Jan 7, 2010 09:30 AM [EST]
posted by Mardi Harrison | Jan 7, 2010 09:30 AM [EST]
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