3rd Party Check

[UncleWiggly]

What is the name of your state (only U.S. law)? MD
I fired an employee for not fulfilling work obligations.
He owed me for days I paid that he did not show up. He also came late picked up his check while I was off site and then left thinking I would not know.
But I passed him and when I checked up immediately he had not done the job (barn work/ag)
I immediately called him, fired him and told him I was stopping check since he 1. Had not done any of that days work, and 2. He owed me for the days I had paid him for.
Called bank stopped check.
2 weeks later he goes to Liquer store signs check over to them, they charge him $10.00 and cash the check.
Now they want me to make restitution to them.
My daughter who teaches business law says once he signed check he took possesion and by taking it to liquer store he knowingly committed fraud? I spoke w/ my bank they tell me I am not liable for refunding liquor store as well??
But everything I read on here says otherwise.
While I hate to pay the liquer store and I did tell them to try and get money from him 1st since they cash his checks and know who he is.
I also do not need the hassel.
He has no drivers lisense, and no bank account, for me to try and find him and take to court for a lousey $245. would be painfull, but its the principle.

[Antigone*of*Greece]

Originally Posted by UncleWiggly

What is the name of your state (only U.S. law)? MD
I fired an employee for not fulfilling work obligations.
He owed me for days I paid that he did not show up. He also came late picked up his check while I was off site and then left thinking I would not know.
But I passed him and when I checked up immediately he had not done the job (barn work/ag)
I immediately called him, fired him and told him I was stopping check since he 1. Had not done any of that days work, and 2. He owed me for the days I had paid him for.
Called bank stopped check.
2 weeks later he goes to Liquer store signs check over to them, they charge him $10.00 and cash the check.
Now they want me to make restitution to them.
My daughter who teaches business law says once he signed check he took possesion and by taking it to liquer store he knowingly committed fraud? I spoke w/ my bank they tell me I am not liable for refunding liquor store as well??
But everything I read on here says otherwise.
While I hate to pay the liquer store and I did tell them to try and get money from him 1st since they cash his checks and know who he is.
I also do not need the hassel.
He has no drivers lisense, and no bank account, for me to try and find him and take to court for a lousey $245. would be painfull, but its the principle.

The liquor store is an innocent third party. You legally owe him the money.

Take "the principle" outon your ex-employee and leave the liquor store out of it.

Ask your daughter and your bank about holder in due course and see if they change their advice.

[Country Living]

He needs to post in the employment section of this board to get answers on the ramifications of stopping what is essentially a payroll check.

[Antigone*of*Greece]

Originally Posted by Country Living

He needs to post in the employment section of this board to get answers on the ramifications of stopping what is essentially a payroll check.

It is a big no-no no matter what forum he poses his question.

[ecmst12]

You have no right to withhold earned wages no matter how poor of a job you think he did.

[Country Living]

And then there's that whole thing with the Department of Labor frowning on employers not paying employees (stopping payment on a payroll check).

[debtcollector`]

Originally Posted by Country Living

And then there's that whole thing with the Department of Labor frowning on employers not paying employees (stopping payment on a payroll check).

Just call it an unearned bonus and Congress will try to take it back.

DC