Bounced Payroll Checks, opinions?

[Mr.Sparkle]

Ok, I don't really know if I want to post this but at least at the moment I do.....

I have a situation with a former employer that I would like some opinions on.

It has been almost 1 year since a former employer of mine (whom I worked for for over 5 years) bounced 3 payroll checks on me and has yet to make good on it. (I used to do banking only one or two times a month so it would not be uncommon for me to have a few paychecks to deposit at one time)

Now at times I can be a somewhat compassionate human being and knowing at the time this former employer was "feeling the crunch" and had recently laid off half his employees (the week after Christmas 2007) we spoke of the "moneys owed" and came to an agreement that I could no longer work for him until paid in full.........yada yada yada.

We'll fast forward to the present day and I have had 2 "meetings" with him since in regards to the "money owed" where he has hemmed and hawd and we'll basically put B.S.'ed me about him never being paid from certain jobs and he's got problems etc etc etc... and only one clear and present thing comes to my mind......

This is not my problem.


I have not made an attempt to get my "monies owed" in a few months and am at the point of either A) Illegal Activity or B) Anniversary Card with Legal Implication or C) It's been long enough just call the Labor Board.

Couple of facts I happen to know:

1- Since I left he has strapped the toolbelt back on and hired 2 Greenies (kids with 0 electrical knowledge making 3rd world wages)

2- He happens to owe a local supplier over $15k and has not attempted to pay them in over a year.

3- He had a large addition put on his house last year and has yet to pay some of the subs.

4- This guy mistakes kindness for weakness.

I am trying to resolve this in the most civil way due to the fact that we live in the same town/neighborhood, know the same people and the fact that I am now an EC in the area as well.

What would you do?

Let the opinions rip........

Sorry to bring personal battles into the forum but I would like to hear EC's as well as employees of EC's comment on this situation.

 

[satcom]

That is an easy one, a complaint to the labor department, and he will have a nightmare, that will never end, your are not being argessive eniough,

 

[480sparky]

Do what you can to get your money. Looks like he's teetering on bankruptcy.

 

[brian john]

As an owner of a business I think you should take all legal recourse as as soon as possible there may be a stature of limitations on this. It is your money he owes you...PAY UP SUCKA.

 

[luckyshadow]

I would be sure I had all the evidence in order. Then I would call the labor department and discuss it. Then I would visit the local court to check into a small claims suit. Might not cost that much to file a suit.
Be aggresive!!! You have tried in good faith to resolve this, time to become the "pit bull" and go after him. DO IT NOW BEFORE HE CLOSES UP OR FILES BANKRUPTCY then your just screwed.

 

[charlie b]

I have always understood that of all a business's debts, payroll must come first. It may even be a violation of law for a company owner to pay the electric bill or a supplier's invoice, if there are any employee paychecks not yet written. This is certainly in the realm of legal action. I would not wait for anything, and would not take any direct action (threats, non-legal steps, whatever), but would call whatever governmental agency has authority over such matters.

 

[growler]

Sorry to bring personal battles into the forum but I would like to hear EC's as well as employees of EC's comment on this situation.

Were you working for this guy as a legitimate employee ( salary/hourly ) or were you a 1099 sub contractor?

If you were a legitimate employee this guy may be in lots of trouble. If he didn't pay you then he probably didn't cut and pay taxes taken out, pay for unemployment insurance or workmans comp. on the hours that your worked. If he did show any of the money from these checks on his books as expenses then he commited fraud. Not paying an employee is really hard to cover on the paperwork side of things if you are trying to stay legal.

I would question his actions with the labor board, the IRS, state unemployent office, and his workman's comp. carrier to make sure that I was covered while working for him.

If you feel that you want to be a nice guy then tell him ( don't ask) to give you your money and you will let this all drop. If you start the ball rolling this will be a real can of worms and he will not be a happy camper.

 

[Mr.Sparkle]

Were you working for this guy as a legitimate employee ( salary/hourly ) or were you a 1099 sub contractor?

Legit employee the entire 5+ years. There were other things I caught him doing as well, on 2 separate occasions in my 5 years there he was taking money out of my paycheck for healthcare when he was not paying the healthcare provider on time and my insurance was canceled for brief periods then re-instated unbeknown st to me at the time. But that is just dust in the wind.....

 

[celtic]

Bouncing a payroll check is quite serious.

Personally, I would contact the local Sheriff's dept. [NOT local law enforcement] , get their input [not legal advice!]...ie, would they be willing to send an officer with you to this person's place of business, etc.

Get your ducks in a row with law enforcement.

Next...
Goto this clown's place of business with the checks....demand the money [not jumping up and screaming]....when he starts bringing out the cattle....inform him that a Sheriff's officer will be enroute momentarily.


IF the Sheriff's dept. will not respond [as detailed ~ no blind siding law enforcement here]...seek PROPER legal consul ~ not the advice of some bozo on the internet with a "Murdock" avatar.

 

[arossi]

I have personally never had a payroll check bounce. I am glad to hear you are not still working for that company. I personally think you should go after him for every penny he owes you, this is your well being, I don't know if you have a family, but thats food and clothes off your kids backs, definitely do not hesitate on this.

 

[growler]

I wish to make one more comment. With checks that are returned for insufficient funds on a deposit there is another way that can work to get your money. You can run a check through the bank more than once.

If the account that the checks are written on is still open then you take them to the bank teller at the bank that issued them and ask if there are funds enough in the account to cash them individually ( this keeps you from a charge to your account). Even if he doesn't have the money for all the checks ( a deposit) his overdraft protection may be enough to cover them one at a time. If you can then get cash in hand and then deposit this.

If he still has employees and pays by check then early friday would be a good day to see if there is any money in the account.

As my old pappy used to say there is more than one way to skin a cat. I just can't figure out why anyone would want to skin a cat but collecting money is different. :grin:

 

[wawireguy]

Contact your state authority on labor and wages. You earned the money. He owes it to you and obviously isn't going to pay it. I'd start there. Employees generally have a lot of rights when it comes to getting paid.

As far as worrying about fallout locally I would think it's in your best interest to portray yourself as abiding by the law. There is nothing wrong with attempting to collect wages owed to you. This guy is a competing EC and sounds like a dishonest one. Seems your area would be better served by not having him in business.

 

[480sparky]

Call the bank directly, and give them the account number and simply ask if there is suffecient funds (i.e., the amount of your check) to pay you.

If they say yes, beat feet and burn rubber down there and cash it on the spot. Be sure to repeat the above when you get there.

 

[celtic]

In NJ the bank will NOT tell you anything more than whether or not there is sufficient funds to cash the check.

Might be true for other States...but I don't live there.

However.....WHY should the OP start jumping through hoops?
Let the EC be the trained seal.

 

[growler]

In NJ the bank will NOT tell you anything more than whether or not there is sufficient funds to cash the check.

They want tell you over the phone but they have to at the counter. They either say insufficient funds or give you the cash. You do have to take it to the bank it's drawn on and not deposit in your account or cash at your bank.

If you cash it at your bank they will only see if there is enough money in your account to cover it.

If he had taken those checks to the bank that they were drawn on and found out there was insufficient funds to cash them ( without bank stamp) then he could have taken them to a check cashing place and paid about 20% and gotten cash. They will then hound the writter of those checks until the end of time to get their money.

 

[SEO]

If he's bouncing payroll checks it's my guess that he is in arrears an his 941 taxes as well. Very bad situation. Doesn't sound like any money is there. Does he have anything of value that he gan give you in exchange for your pay?

 

[Jhaney]

yeah like the deed to his house.....I would see if you could charge him interest on the money as well

 

[celtic]

If he had taken those checks to the bank that they were drawn on and found out there was insufficient funds to cash them ( without bank stamp) then he could have taken them to a check cashing place and paid about 20% and gotten cash. They will then hound the writter of those checks until the end of time to get their money.

I think in NJ it's 3% at the check cashing place...I haven't been to one of them places since the 80's.

It is a good option and avoids the hoops and legalities for the OP.....BUT...these checks are a year old ~ will a check cashing place honor them? I honestly don't know.

 

[growler]

It is a good option and avoids the hoops and legalities for the OP.....BUT...these checks are a year old ~ will a check cashing place honor them? I honestly don't know.

No they won't touch them now that he has tried to deposit them. They are stamped as having been rejected by the bank for insufficient funds. I would never have let this go for a year.

That doesn't keep him from trying to cash them at the bank they are drawn on. Unless they have a time limit on them.

If he had tried to cash them in the first place this idea would have worked well. He really should have guessed his employer was a scoundrel when his insurance lapsed a couple of times.

I just made that comment in case there are other young guys out there that don't know how the system works. If you get laid off or are in doubt about a pay check then you don't deposit it you take it to the bank that it's drawn on for cash. Checks are processed in the order they are received and a deposit may not be run through the system until later that day or even the next. Once you get the cash in hand you are good to go and someone elses check can bounce.

Never trust anyone over or under 30.

 

[Mr.Sparkle]

It was not possible for me to try to redeposit the checks due to the fact that they were issued by a payroll company which will not give out the name of the banking institution they were drawn upon.

I am aware that I am the only one to blame for letting the problem go this long, the offending party and I had 2 meetings or should I say "confrontations" regarding the issue within the first 6 months of the offense where he swore up and down that I would get paid "as soon as possible" so I became lax on the situation giving the benefit of the doubt at first. My fault for being too nice / naive whatever you want to call it. I have a huge personality flaw in wanting to think all humans have a conscience and will to do good deep inside. For about 15 years now I have noticed otherwise, you would think I would have shaped up by now.....