what laws pertain to Stop Payment

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InquizitiveOne

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I was unemployed and received a call from company X about employment, so I interview
And decide to take the position. The interviewer wants me to work rite away so he has me fill out a 1099 form and I start work the next day about 2 week later I receive a Offer letter for a salary position, I agree and send it back. A week goes by and I get a response stating that the Auto Insurance they use wont cover me for a reason (nothing major, no DUI's or anything like that )that was never disclosed

So long story short, They issued two salary checks and and I deposited them together on
7.3.06 and on 7.11.06 the bank returned them to me due to a stop payment request made by company X because they made a mistake and issued "salary" checks instead of "contractor" checks witch caused my account to go in the red to the tune of -1447.63 plus11 overdraft fees for a nice sum

Can you help me discern where responsibility lies?
 
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