According to state abandoned property laws, unclaimed paychecks (wages) become a form of “abandoned property.” The employer (you) must pay the unclaimed wages over to the appropriate state treasury agency if they remain unclaimed for a certain number of months or years.
Escheat laws are state abandon property laws that govern abandoned property. The property “escheats” or reverts property to the state.
When you have an unclaimed check, there are certain steps you need to take. For instance, head on over to our blog post for details on what you need to do next.