Wednesday, December 29, 2010

Missouri Introduces Payroll Legislation

Pursuant to both the 1981 and 1995 Unclaimed Property Acts, payroll (e.g., uncashed paychecks and similar items) has a dormancy period of one year (as opposed to 3 or 5 years for many property types).  The one-year dormancy period is the norm in most states, but there are outliers.  Missouri, which currently has a five year dormancy period for payroll, has introduced legislation to join the majority of states using a one-year dormancy period. 

The new legislation, House Bill 64, would shorten the dormancy period for payroll related items to one year, effective January 1, 2012.  The bill has not yet been scheduled for a hearing before the full legislature.

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