North Carolina
In error I sent a check to the wrong employee. The two employees have the same name. Although I called her to tell her of the error she cashed the check and now hangs up when I call and will not respond to my communication.

Can anyone telll me what my recourse is or what law covers this area.

You are completely free to terminate this employee and I certainly would. She cashed the check after she was told it was sent to her in error, full well knowing she wasn't entitled to the funds. That is theft. Hanging up on you when you call and refusing to respond to your communications is insubordination. You have a double-whammy going on here.

What you also need to do is contact your State's Department of Labor and inquire whether you can withhold the overpayment amount from this employee's final paycheck.

I am sorry to say it was her last paycheck. Can I sign a police complaint?
Susan

Sure. The police will advise you whether this is a criminal matter, although it appears the employee knowingly cashed a check that didn't belong to her which must violate something. You can also file suit in small claims court for the return of the money.