Stop Payment Charges

windjam

Currently our bank charges us $20 to place a stop payment. Our practice has been that if the employee says they had the check and then lost it, we pass the $20 charge on and deduct it from the replacement check. No one has ever questioned this. Now my CFO is asking if that is legal. We are in Oregon by the way. I know that we can't do payroll deductions that would take the employee below minimum wage but is this the same? Because I usually have one or two a month the $$ could add up if the company has to pay. The mention of the charge sometimes results in the person looking for the check again and, quite often, finding it! (Don't suggest direct deposit as that is not an option for our company at this time .) Thanks forum for your input! Note to Paul: the weather in Seaside/Cannon Beach was gorgeous the last weekend of April!

LindaS

I am in Wisconsin and anytime I have had to stop payment on a payroll check, I always passed the cost onto the employee. I always had them sign an authorization and never had a problem although the employees are not happy about having to pay it. Don't know what your CFO is talking about unless you have a state law of some sort.

Nat

We also charge employee for stop payment. If they don't want to pay upfront, then they sign an authorization form and it's deducted the next pay period. Don't know what would be illegal about that. Check with our local Wage and Hour to be sure.