Do Paychecks Expire? Your Options for Uncashed Wages

Many wonder if a paycheck can expire. While checks have an expiration period within the banking system, an employer’s obligation to pay earned wages does not diminish. Understanding these distinctions helps ensure wages are properly accounted for and received.

Understanding Check Expiration

Checks are financial instruments subject to rules regarding their validity within the banking system. A key concept is the “stale-dated check.” Under the Uniform Commercial Code (UCC), banks are generally not obligated to honor a check presented more than six months (180 days) after its date. This six-month period is a common banking practice, and checks older than this are considered stale-dated.

Despite being stale-dated, a bank may still choose to cash or deposit such a check at its discretion, especially if there are no concerns about fraud or insufficient funds. The bank’s decision often depends on internal policies and whether they can verify the funds. If a bank rejects a stale-dated check, it could lead to the check being returned and potentially incurring a fee for the person attempting to deposit it.

Some checks may have a “void after X days” notice printed on them, such as “void after 90 days.” This notice is a policy set by the check issuer or bank, serving as a reminder to cash the check promptly. This printed instruction does not legally invalidate the underlying payment obligation; it primarily affects the bank’s willingness to process the check without further inquiry. Even with such a notice, the six-month UCC guideline still applies, and the bank may process the check if they deem the funds are good.

Payroll Check Specifics

The general rules of check expiration apply to payroll checks, meaning the check can become stale-dated if not cashed within the six-month period. An employer’s obligation to pay earned wages is separate from the physical check. Even if a payroll check becomes stale-dated or is lost, the employer still owes the employee the wages. State wage payment laws govern how and when wages must be paid, and these laws supersede banking rules regarding the check’s validity.

Employers have a continuing responsibility to ensure employees receive their pay, even if the original check is never cashed. They cannot simply void the check and keep the money. If a payroll check remains uncashed, employers are expected to keep the funds available to pay the employee or to eventually remit them to the state as unclaimed property. Many employers have policies for reissuing payroll checks that are lost, stolen, or become stale-dated.

These policies involve the employee requesting a replacement check and the employer verifying that the original check has not been cashed. Employers are required to document attempts to contact employees about uncashed wages. This ongoing obligation highlights that the employee’s right to their earned wages persists, regardless of the check’s status.

Unclaimed Wages and Escheatment

When a payroll check remains uncashed for an extended period, the funds become subject to state unclaimed property laws, a process known as escheatment. These laws require companies to turn over abandoned or unclaimed property, including uncashed wages, to the state’s unclaimed property division. These laws are designed to protect consumers by ensuring that money and other assets are not permanently lost if the owner cannot be found.

Each state specifies a “dormancy period” during which the property must remain unclaimed before it is considered abandoned. For uncashed payroll checks, this dormancy period commonly ranges from one to five years, though one year is frequent for wages. Before remitting funds to the state, employers are required to perform “due diligence,” which involves making a good-faith effort to contact the employee at their last known address. If these efforts are unsuccessful after the dormancy period, the funds are then reported and remitted to the state.

Once escheated, the state holds these funds indefinitely until the rightful owner or their heirs claim them. Individuals who believe they may have uncashed wages or other unclaimed property can search for it through their state’s unclaimed property database. The National Association of Unclaimed Property Administrators (NAUPA) also sponsors a free website, MissingMoney.com, which allows searches across many participating states.

Addressing Expired Payroll Checks

If you discover an expired or stale-dated payroll check, contact the employer who issued it. Provide details of the original check, such as the issue date, check number, and amount, along with any relevant employment dates. Having updated contact information ready will facilitate the reissuance process. Employers are obligated to reissue funds for earned wages.

If the original employer is no longer in business or you are unable to reach them, search for your unclaimed wages through your state’s unclaimed property division. Most states maintain online databases where you can search by your name. This process is free and designed to help individuals recover funds that have been turned over to the state as abandoned property. You may need to search in any state where you previously lived or worked, as unclaimed property is reported to the state of the owner’s last known address.

For wages owed by a federal employer, the Department of Labor offers a “Workers Owed Wages” tool that allows individuals to search for back wages. If you locate funds, follow the specific instructions provided by the state or federal agency to submit a claim, which involves verifying your identity and ownership of the funds.