is it illegal for employers to give their employees, the paystub and sign their check . Then to give cash?

Question

when the paychecks were given out , the owners had us sign the back of the check , then they gave us cash and our paystub, is there any reason for this , has anyone ever had this kind of situation happen to them.

Answer 1

As long as the cash is the equivalent of the amount on your paycheck, and you get the stub, that is fine.

It may very well be that there was a glitch, and the account the checks were on was closed -- so they "cashed" your check for you. You had to sign the check so that they could prove that you received the cash.

There is nothing wrong with this -- it is strange, but not illegal or even unethical.

Answer 2

There is no law preventing employers from cashing paychecks for employees. It is strange for them to require the practice.

Answer 3

They are applying for some kind of loan and don't want any wage accrued liability expense to show up on the balance sheet during an audit. Smaller liabilities outstanding will give them better chance to get approved for the loan.

Answer 4

no, they cashed your paycheck. were all the numbers correct on the pay stub? (I.E. soc sec, medicaid, FIT, etc.....?) one of the reasons could be that they paid you out of their petty cash and not from an interest Bering account.