Legal Question in Credit and Debt Law in California
Whose responsible for a cashed "stop payment" check
Our employee lost his paycheck. Asked us to put stop payment & issue another. We did. Someone cashed the one we had put a stop payment on at a check cashing place, our bank of course did not honor the check, now the check cashing place says that we the "writer of the check" are responsible even though we put a stop payment on the check. Isn't their responsibility to verify that the check is good before they cash it.
1 Answer from Attorneys
Re: Whose responsible for a cashed
You are responsible for the check unless you held the second check for 30 days. Unfortuneately the law requires you to pay departing employees immediately and many employers like yourselves get caught in this conundrum. In the future if an employee claims to have lost his check, tell the employee that you will issue a new check in thirty days, that the fault of losing the check is the employees nor yours. Then cancel the bad check. Also on termination have the departing employee sign a receipt for the check.
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