There is probably a string of cases in CA along this line......and to me damages due to bounced paychecks should be recoverable!
"A federal court recently determined that an employer's issuance of paychecks drawn on non-California banks warrants the imposition of sizable penalties. Specifically, in Solis v. Regis Corporation, plaintiff filed a putative class action lawsuit alleging that by issuing paychecks drawn on an Illinois bank, Regis violated Labor Code section 212, which requires that California paychecks be "payable in cash, on demand, without discount, at some established place of business in the state, the name and address of which must appear on the instrument." Plaintiff sought penalties pursuant to Labor Code section 225.5 (authorizing a civil penalty against any person who unlawfully withholds wages due to a violation of Section 212) because some of them had been forced to pay additional fees to cash these out-of-state payroll checks.
Although Regis admitted a technical violation of Section 212, it argued that it did not owe penalties for those employees who had been able to cash their paychecks for no charge -- in other words, employees who did not pay a check-cashing fee had no wages withheld and, therefore, no penalty should be imposed.
The U.S. District Court for the Northern District of California disagreed, holding that regardless of whether an employee had been injured, Regis technically violated the statute by paying employees with checks that did not comply with Section 212. The court recognized that Section 225.5 penalties apply only when workers have to pay a fee, but noted that even if penalties are not available under Section 225.5 for those employees who did not pay such fees, penalties are available to them under California's Private Attorneys General Act.
The Solis decision is a harsh reminder to employers of the importance of periodically having their employment policies and practices audited to ensure that they are in full compliance with California's intricate maze of labor laws. If you have any questions regarding the Solis decision or your company's pay practices,"