Bounced Checks and Fees

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The Colorado Division of Labor Standards and Statistics will investigate disputes where an employee has not been fully compensated in a timely manner for all work performed.

The Division does not have the authority to recover expenses (for example, bounced check fees) that are incurred as a result of checks, drafts, or orders that are not paid upon presentment to a bank or other financial institution.

Employees may complete a formal notice of dishonored instrument, which serves to notify the employer that the individual is demanding full payment of the amount of the invalid check. Once the formal notice of dishonored instrument has been delivered, the employer may be liable for three times the amount of the check plus court costs, attorney fees, and actual damages caused by the nonpayment of the paycheck including associated late fees if the employee has not been fully compensated within 15 days of the notice.

Notice of Dishonored Instrument


References

Colorado Revised Statutes 13-21-109  (Recovery of Damages for Checks Not Paid)


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Colorado Division of Labor Standards and Statistics | 303-318-8441 | Contact Us