LOST PAYCHECKS

kpratt

[font size="1" color="#FF0000"]LAST EDITED ON 03-09-04 AT 03:03PM (CST)[/font][br][br]Is it okay to ask an employee to wait seven days before replacing a paycheck that was sent in the mail?

Crout

[font size="1" color="#FF0000"]LAST EDITED ON 03-09-04 AT 02:55PM (CST)[/font][br][br]It varies depending on your State law. In PA employees must be paid no later than 15 days after the end of the pay period, unless otherwise specified by contract. Check your state DOL for any regulations.

Wait! I just thought about this some more. Are you saying that you already paid the EE and he/she lost the paycheck? If that's the case then in the absence of a state regulation that covers this situation it seems reasonable.

kpratt

The check was mailed to reach the employee on Friday, they are already calling saying they want another paycheck issued immediately or they will call wage & hour

System

We can produce a replacement pay check on the same day if we choose to, but it's cumbersome to do so. If the employee lost the paycheck, it's really OK to make them wait, but think about it. You don't want to start a habit with this employee or any others, but it could be a small kind gesture that generates some good will.

kpratt

Replacing the paycheck means paying a charge to stop payment. We have just hired 294 direct care workers that could potentially be in the same boat.

Balloonman

What we do...........as delays happen if they want another check cut we have them sign a form stating they will pay for the stopped payment charge on the other check. Our pay policy is direct deposit or we mail it to you. We have had delays up to 5-6 days with the postal service.
Otherwise, waiting 7 days to see if the check turns up is reasonable. Most will opt to pay the stopped check fee, to get a check right away. I had one employee who threw an absolute fit, after signing the form. His entire arguement was based on the "it's not my fault". I pointed out that he chose not to get direct deposit. :-)
My $0.02 worth.
DJ The Balloonman

marc

As others suggested, this is a good time to push the direct deposit approach. We used to mail paychecks to some fairly remote locations in Nevada. We did require a reasonable wait - up to 7 days - before we would replace the check. But think about it, we would also mail the replacement check. We gave the EEs a couple of replacements free and then started charging for it. All the while, pushing direct deposit. Invariable when it involved reaching in their pocket to pay the fee, the would finally opt for direct deposit.

The big incentive here for paper checks has to do with the casinos that give a free spin when you cash your check. EEs wanted that chance at the million dollars.

Crout

>Replacing the paycheck means paying a charge to
>stop payment. We have just hired 294 direct
>care workers that could potentially be in the
>same boat.


So is it your fault or not???? If you guys screwed up, then you should replace that check ASAP. If the EE screwed up, you could probably make him/her wait for a few days without violating the law, but as others have suggested sometimes the path of least resistance is to just go ahead and fix the problem as soon as you can. You should ask yourself how much time you will waste responding to a DOL inquiry that was launched by a disgruntled employee. You could always give the employee the option of waiting the 7 days or paying service charge.

mwild31

We do the same as Balloonman. At issue really is whether or not you cut and sent the check. Sounds like you did & delays with the mail are outside of your control.

LindaS

Agree with Balloonman...

If an employee's check is lost after it has been mailed I usually tell them to wait at least 5 days. If they don't want to do that, I inform them that they will have to pay the stop payment fee and have a deduction authorization form signed by them before they are allowed to get their replacement check. I also use that time to remind them of our direct deposit option.

Pork

KPRATT: Our policy is based on the US POST OFFICE instruction and we offer the EE the option:
a) Pay the banking fee of $25.00 to stop payment on the lost check and we cut the check in our next check run.
b) The company pays the stop payment cost of $25.00 only after the US POST OFFICE has declared, it is lost in their system about 15 plus days.

If the check shows up and it is our fault or the US POST OFFICE fault then we re-imburse the ee the $25.00 bank service fee.

We have had about three lost checks and have paid for 2 of them; the ee paid for the other.

PORK