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In Arizona, United States, can an employer require an employee to cash a check? This might be useful, as if an employer writes a check for labor/services rendered, the employer has an unfulfilled obligation hanging over their head until the check is cashed. I'm not necessarily saying to not pay the employee, but trying to see if there is any way to pressure employees to cash a check, possibly enforcing a legal obligation to cash a check upon/before employment, or before services/labor is rendered, by having an employee sign a contract/agreement, possibly with a time frame to cash checks given.

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    In many states, there's a "backstop" so that uncashed checks don't remain on a company's books indefinitely: the "unclaimed property" division of the state government. After a certain amount of time, companies who owe money to someone write a check to the state, and the unclaimed property division of the government is now responsible for paying out the money if and when the creditor remembers that it's still owed to them. – Michael Seifert Oct 1 at 16:01
  • @MichaelSeifert would that be the Department of Labor, in this case? – Eliter Oct 1 at 19:16
  • @Eliter No, the Arizona Department of Revenue manages unclaimed property. – Luck Oct 1 at 19:23
  • I'm trying to figure out which answer to mark as the best. Both George White and Luck posted excellent answers. If only there was a way to combine both answers, and both give them credit. – Eliter Oct 7 at 20:54
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No.

Once a check is handed over to someone else, it becomes their property. They can do with it what they want: cash it immediately, cash it next week, burn it, sign it over to someone else, etc. You can certainly remind them to cash their checks though.

As an employer in Arizona, you can fire someone for almost any reason, or no reason at all.

In Arizona, wages become unclaimed property once you have lost contact with the employee for 1 year.

Reconciling your bank account and holding cash for outstanding checks is a basic business function. If you're having such a difficult time managing cash on your own, it may be worth hiring a part time bookkeeper to help out.

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Probably not but I googled "require direct deposit Arizona" and saw an article that said -

Arizona Allows Employers to Mandate Electronic Payment of Wages. Effective on July 20, 2011, employers in Arizona can mandate electronic payment of wages. Employees that do not elect direct deposit may be paid by payroll debit card, which now can be treated as the default option.

This should solve your problem although having additional cash in your account that you might get interest on does not seem like much of a burden, just some standard accounting.

  • Fascinated to know why the down-vote. It doesn't directly answer the question, but it probably does solve the OP's problem. – Martin Bonner supports Monica Oct 1 at 7:27
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I googled for UK numbers, and here a cheque will be hounoured usually for six months (which means a bank will put the money into your account), but is valid for six years (so the employee would have a right to get the money from you for six years). If they wait too long, the employee risks that the company might go bankrupt, and they will be just considered a debtor and not get their money.

I don't think you can force anyone to cash a cheque. If this happens to you and the amount of money is troubling you, best to open an account and leave the money in that account.

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