My company asked me to post date checks to pay our suppliers even though we didn't have the money to pay them yet, is this illegal and would this violate company or professional standards?
2007-03-25 14:01:31 · 5 answers · asked by angelaca1 2 in Business & Finance ➔ Careers & Employment
It is not illegal on your part; you are being instructed to perform a task. It is certainly unethical on the company's part to pretend to pay their suppliers when they are well aware that no payment will be forthcoming. If you work for a publicly-held corporation, they may also be violating their own internal controls and/or provisions of the Sarbanes-Oxley Act which has to do with corporate governance (especially financial controls.)
If they can't pay their suppliers, it's a matter of time before they will be unable to pay their employees. Find a new job as soon as you can, before your postdated payroll check bounces.
2007-03-25 15:26:01 · answer #1 · answered by Mel 6 · 0⤊ 0⤋
I don't know about it being illegal, but I can give you some points from a bank's point of view. A check is negotiable from the moment that it is given to the payee. No matter if it is dated in the future. The bank will pay it anyway. If the check is presented to the bank against insufficient funds, obviously the bank will charge the company a fee and probably return. Once the check is returned, it goes back to the payee and they have the ability to either redeposit it or go back to your company for another form of payment. They also may take it to their local court house and file a claim against your company. After that, I am not sure what happens. It is obviously not ethical for the company to do this, though.
If you don't feel comfortable with this practice, you should find another job. What would you do if they did that to your paycheck and it returned due to insufficient funds? Trust me, this is VERY common. I see people come into the bank everyday that want to cash their paychecks, but can't because their employer doesn't have any funds in their account. Think about that.
2007-03-25 21:20:33 · answer #2 · answered by Texas Girl 3 · 0⤊ 0⤋
You know it's not right.
You're more liable than the employer because
they'll deny ever having instructed you to
do this.
Example: An old employee is instructed to give his username and password to new employees at a call center to save time. Later, he is accussed of fraud and fired.
A welder is instructed by a supervisor to weld around tanks with harnful fumes. He refuses at first, but the boss becomes very mad, says time is money and there's a deadline, can't remove fumes in time.
The welder starts, and an explosion occurs.
Who's at fault? The boss or welder.
The welder. He knew better, plus the boss
denied instructing welder to commence dangerous act.
2007-03-25 21:21:21 · answer #3 · answered by 1090 4 · 0⤊ 0⤋
Doesn't sound right to me, same as it would be wrong for you to write a check from your own personal account, knowing that the funds were not there. But, if you are directed to do so by your boss, then that is your job to do.
2007-03-25 21:09:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is illegal to post date checks, and illegal to write checks when the money is not there and you know it.
If you do write the checks, do not sign them. Make one of your bosses do it, or they can shift the blame entirely to you.
2007-03-25 21:15:59 · answer #5 · answered by innocence faded 6 · 0⤊ 0⤋