Old Pay Checks

What is the name of your state? Texas

I recently found some old checks (about 2-1/2 years old) from an former employer. I figured they were no good but tried depositing them anyway. The bank returned them citing "stale dating" which I understand is anything over 6 months. They said that contacted the company but they refused to honor them.

My question is simply if I have any legal recourse in recovering these funds through small claims or an attorney or am I simply SOL as I suspect. Thanks for any advice.

[cbg]

I'm not quite sure what this is doing in the Family Law forum and not in the Employment Law forum, but what the hey.

You are SOL. You received the paychecks - nothing was stopping you when you first received them from cashing or depositing them. If you "forgot" about them or held them for whatever reason, that's no one's responsibility but yours.

[djohnson]

Have you contacted the former employer? It's a possibility that they can issue you new checks or it has been sent to your state as unclaimed property. If that is the case then you can get the money back. I would try those first before automatically filing a suit.

That is so surprising to hear.

I mean; if I write a check for my new DVD player; and for whatever reason the local Best Buy does not cash the check for 2 years; does this mean; I no longer owe Best Buy for the DVD Player?

Somehow; I bet Best Buy will be hunting me down; and it would be my responsibility to pay them.

Sorry if this is the wrong formu, I waqsn't sure. Thanks for all your input.

[cbg]

itsallgood; no, you would not be obligated to pay Best Buy again in your scenario. You already paid them; if they didn't cash the check that's THEIR fault.

[djohnson]

The problem with that it you have nothing to prove you paid them without the showing where the check cleared your bank. When it hasn't then you would still owe them right?

[cbg]

It's unclear whether djohnson is asking about the Best Buy hypothetical or the original post, but the answer is the same in either case.

The employer, or the buyer, provides the employee, or Best Buy, with the appropriate check in the correct amount. The employee, or Best Buy, now has the responsibility for actually depositing, or cashing, that check. If they fail to do so, they cannot come back two years later whining that they never got their money. They could have cashed the check before the check expired and had their payment. If they failed to follow through on THEIR responsibility, which was to deposit/cash the check they received, it's their own fault if they don't get paid.

It would not be the responsibility of the employer/buyer to prove that the check cleared their bank. It would be the responsibility of the employee/Best Buy to prove that there was some valid reason why they COULD NOT cash or deposit the check before it expired and therefore are due additional consideration.

Wow; you learn something new everyday.

Off to Best Buy to buy my new DVD player!


(KiddINg!)

[JETX]

On this one, I respectfully disagree with 'cbg'. Simply, the check was not accepted (doesn't matter the reason) and the debt has NOT been paid.

The UCC (Uniform Commercial Code) provides that a check is only valid for only 90 days.
"§ 3-304. OVERDUE INSTRUMENT.
(a) An instrument payable on demand becomes overdue at the earliest of the following times:
(1) on the day after the day demand for payment is duly made;
(2) if the instrument is a check, 90 days after its date; or
(3) if the instrument is not a check, when the instrument has been outstanding for a period of time after its date which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade."
Source: [url]http://www.law.cornell.edu/ucc/3/3-304.html[/url]

However, even though the checks themselves may no longer be valid (for presentation), the debt itself remains unpaid and subject to a valid claim, can be pursued if within the statute of limitations (4 years in Texas).

I would suggest you contact the employer (if still in business) in writing and politely ask them to make payment of the overdue compensation. In return for payment, you will return the uncashed checks to them.

[cbg]

Some years ago my company was the employer in a similar situation and the information I provided was what our attorney told us. I don't recall any more if the employee attempted to sue or not but I do know that we never provided new paychecks.

However, it's possible that we were operating under by a state law that does not exist in Texas.

[gobonas99]

CBG - I have to agree with JETX on this one.

EVERY state has what is called "Unclaimed Property". This ranges from checks (including paychecks) that go uncashed and not voided and re-issued to deposits that were never returned to overpayments on accounts - pretty much anything where ones person/entity owes another person/entity money.

I don't have the time or the inclination to research each state's laws regarding unclaimed property, but do a google search on unclaimed property for any state, and you'll have plenty to read.

But I work in accounting, and I do have some experience with unclaimed property in NYS, and can tell you the gist of it. Businesses are required to report unclaimed property to their state after X days of inactivity (ie check still not cashed, no activity on account and no contact with customer, etc). This time frame varies by state. The business is then required to hold these funds in an unclaimed property account for a number of years, depending on the laws of the state where the person/entity that is due the funds is located (last known address). Again, this varies by state - I've seen some as short as 3 years, and others as long as 7 years. The funds are at that point turned over to the state (although some smaller businesses turn the funds over to the state immediately, rather than holding them in a UP account). I've seen it done both ways (and let me tell you that neither method is easy to audit!

So...NathanDetroit - you should do some research on the unclaimed property laws for Texas (via google). Then contact your old employer and request that they reissue your checks. If they say they cannot, inquire about how they account for unclaimed property to determine if you need to contact the state to receive the money due to you.

-Christina

[cbg]

I'm not saying Jetx is wrong, and I'm not particularly concerned about it either. I passed on information that our attorney gave us in a similar situation several years ago. If he was wrong, I'm sorry but I'm certainly not going to worry about it at this late date. The poster has the correct information for his state and I have no personal interest in the outcome.

Not yelling at you, Christina, we're still friends (and I love your tag lines) but the subject of unclaimed property is not one that I have particular interest in reading about !

[gobonas99]

Originally posted by cbg
I'm not saying Jetx is wrong, and I'm not particularly concerned about it either. I passed on information that our attorney gave us in a similar situation several years ago. If he was wrong, I'm sorry but I'm certainly not going to worry about it at this late date. The poster has the correct information for his state and I have no personal interest in the outcome.

Not yelling at you, Christina, we're still friends (and I love your tag lines) but the subject of unclaimed property is not one that I have particular interest in reading about !

hehehe...I just LOVE Pirates of the Caribbean....but since I can't put a picture of Orlando Bloom in my tag, I figured my fav quote from the movie would have to do instead.

And I COMPLETELY understand that UP is NOT an interesting subject. Trust me - if I hadn't had to audit it, I wouldn't want to know anything about it, either (thankfully, UP is NOT one of my job responsibilities now!).

-Christina

[cbg]

And my business partner takes care of all operations issues, so IF we ever have employees again (currently it's a two-woman operation) and IF we ever run into this situation, it'll be her problem, not mine.

While I can't remember precisely (it was at least five years ago) , I have a vague idea that the paychecks in question in the case I referred to may have been older than two years. Since you say the range tends to be 3-7, it could be that the attorney's advice was correct for our state and the age of the particular paychecks in question. However, as I said, even if he was wrong, it's too late to do anything about it now. The company in question has been out of business since 2000.

If you like Orlando Bloom and you haven't already seen them, be sure to check out the "Lord of the Rings" trilogy.