An employee said he lost his paycheck. A new paycheck was issued. For some reason, a stop payment was never placed on the first check. Is there anything we can do to recover the money? Signatures show that the same employee clearly cashed both checks.
The only party against whom you have a claim to recover the funds is the one that got paid twice: the employee. If you can't collect from him directly, you may be able to file a small-claims case against him. If that's not feasible, and if he's still in your employ, it would be reasonable to deduct all or part of what he owes you from future paychecks. You may not be able to collect without incurring more expense than the effort is worth.
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