COH Manager
Junior Member
What is the name of your state (only U.S. law)? California
An temporary employee at the small business I operate came to me claiming he had lost his paycheck. No problem, I said, I'll call the payroll company and have them stop payment on it and issue a replacement. However, when I contacted the payroll company, it turned out the check had been cashed two days after it's date of issue. It was deposited into a Wells Fargo account. I retrieved a copy of the check from the payroll company - the employee's name isn't even spelled right on the endorsement. Why Wells Fargo honored the check I have no idea. Wells Fargo, the payroll company, the bank the check was drawn on (BofA), the police - no one seems very interested in resolving the issue.
What is the business's obligation to the employee? I can't 100% verify whether the check was stolen from here or not - I had always been in the practice of putting the paychecks with the empoyee's timecards (this practice has ended). I'm pretty sure the check was stolen after the employee picked it up - he said he thought it was in his backpack. I feel for the employee - I know he doesn't have a lot of money, and it hurts him to be out around $500 for a stretch. It hasn't helped that the payroll company give me bad information, (saying they would take care of the fraud investigation and reissue the check within 72 hours - which was completely untrue, they only do so in the check is uncashed). It's realy kind of strung me and the employee along. At the same time, I can't just give employees $500 because they say someone else cashed their check - it's a dangerous precident. I mean, how can I know for sure he isn't pulling a scam? At what point do I write him a check and either assume responisiblity for recovery or write it off?
An temporary employee at the small business I operate came to me claiming he had lost his paycheck. No problem, I said, I'll call the payroll company and have them stop payment on it and issue a replacement. However, when I contacted the payroll company, it turned out the check had been cashed two days after it's date of issue. It was deposited into a Wells Fargo account. I retrieved a copy of the check from the payroll company - the employee's name isn't even spelled right on the endorsement. Why Wells Fargo honored the check I have no idea. Wells Fargo, the payroll company, the bank the check was drawn on (BofA), the police - no one seems very interested in resolving the issue.
What is the business's obligation to the employee? I can't 100% verify whether the check was stolen from here or not - I had always been in the practice of putting the paychecks with the empoyee's timecards (this practice has ended). I'm pretty sure the check was stolen after the employee picked it up - he said he thought it was in his backpack. I feel for the employee - I know he doesn't have a lot of money, and it hurts him to be out around $500 for a stretch. It hasn't helped that the payroll company give me bad information, (saying they would take care of the fraud investigation and reissue the check within 72 hours - which was completely untrue, they only do so in the check is uncashed). It's realy kind of strung me and the employee along. At the same time, I can't just give employees $500 because they say someone else cashed their check - it's a dangerous precident. I mean, how can I know for sure he isn't pulling a scam? At what point do I write him a check and either assume responisiblity for recovery or write it off?