Question : Can a business withhold a stop payment fee for final checks that were lost?
I have an employee that was terminated and was mailed his final pay check. He states he never got it because it was mailed to a different address than he is currently living and wants another one. No notice of change of address was ever given. I feel this other check is still floating around – possibly in his pocket. Is it wrong for me to issue another check and withhold the stop payment fee of 35 that I will have to pay to ensure the prior check doesn’t clear?
no fee checking

Best answer:

Answer by ibu guru
It is his fault the check is lost since he did not apprise you of a change of address nor have a proper forwarding order with the postal service so that it could be forwarded. Therefore, deduct the costs of the stop payment order and any other costs you incur to issue a replacement check (e.g. some companies use a payroll service that charge an additional fee for manually cutting a replacement check). Enclose an itemized statement of the costs with the check and make sure that the statement and check bear the notation “In full and final settlement of all monies due.”