What happens if my employer pays me by cheque and it bounces?
Your employer is required to have enough money in the bank (or a credit arrangement) to cover your paycheck for 30 days after the date it is issued. If your employer’s check bounced, and you attempted to cash or deposit the check within 30 days of receiving it, you can collect a penalty from your employer. If your employer doesn’t pay you the owed wages immediately after the check bounces, it will owe you an extra day of wages for each and every day you remain unpaid (in addition to the amount of the paycheck itself). This penalty begins on the day you present the check to your bank for deposit and accrues until your employer pays you or for 30 days, whichever is shorter. Your employer may be able to avoid paying the penalty by showing that the mistake with your check was unintentional. In order to receive this penalty you must file a claim with the Division of Labor Standards Enforcement (DLSE).
