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  1. #1

    Default Can an Employer Stop Payment on a Lost Paycheck

    My question involves labor and employment law for the state of: New Hampshire

    I lost an employee's check. I may have mailed it to the employee, after he asked me to give it to him directly. I wrote him a second check for the same amount. Can I stop payment on that first check?

  2. #2
    Join Date
    Mar 2012

    Default Re: Can an Employer Stop Payment on a Lost Paycheck

    Quote Quoting Small Employer
    View Post
    Can I stop payment on that first check?
    You can, but just know that stop payments are no cure all. They cost money. They're only good for 6 months (unless renewed $$$). There's "holder in due course." You really have to just assess your risks. How long has the employee worked for you? How long do you think he'll keep working for you? When do you think you may be switching banks? What's the amount of the check? If it gets cashed, will it cause a bunch of overdrafts?

    If he has the check, and pulls a fast one and cashes it, you can recover if he's still working for you.

    He can hold on to the check and cash it later when the stop expires.

    He can take it to a check cashing place, and when the check cashier gets the check back because of the stop, they'll come after YOU (the maker).

    He might be a great person and return the check if it shows up.

    Think long and hard before you just put a stop on a check.

  3. #3
    Join Date
    Feb 2008

    Default Re: Can an Employer Stop Payment on a Lost Paycheck

    We rarely do stop checks for many of the reasons chyvan stated.

    How do you normally distribute checks? If by mail, then I would suggest NEVER making an exception from that policy (because of issues like this). We only mail for terminated last checks but handout at the location otherwise. If you normally mail, I would have waited the mail time to see if he got it. We never immediately write another check.

    But in your case, since you know it was your mistake because you agreed to not mail it, I can understand wanting to write another check. That said, I would have asked the employee to wait the mailing time if you already mailed it.

    We do have a form that we require employees sign to get a replacement check:

    Employee Name:
    Original Check: #
    Original Check Amount: $
    Original Check Date:
    Replacement Check # _______
    Attached is a payroll check to replace a lost/destroyed paycheck.
    I agree that if should I should find check #______, I will not cash it, but will return it to the company. I understand that if I do cash it, my personal account could be charged return fees that I will be responsible for.
    In the event that the prior check clears the bank after a replacement check is written and clears, I understand that I will be required to repay the double payment back to _________ and it will be subtracted out of my next available paychecks until the full amount is repaid.

    ______________________________________ ___________________________
    Employee Signature Date

    At this point, all you can hope is the employee is honest or that you find the original check on your desk....

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