Can employers force you to

wvjules

DIS Legend
Joined
Mar 7, 2001
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14,682
do direct deposit? I called my hr department to cancel my direct deposit. They said that its a requirement that all employees use direct deposit. That doesn't sound right to me. It is legal for them to force me to do this?
 
wvjules said:
do direct deposit? I called my hr department to cancel my direct deposit. They said that its a requirement that all employees use direct deposit. That doesn't sound right to me. It is legal for them to force me to do this?


I don't know if it is legal/illegal but if that is how they pay people, then that is what they do. Why don't you want to do direct deposit, it's FABULOUS! I know at DH's old company a lot of people would chose not to direct deposit for what ever reason (one friend didn't "trust" it). Well, the paychecks are UPS'ed from 3 hours away so if the weather is bad, they don't get their paychecks. We have been doing direct deposit for over 10 years and have NEVER had a problem.
 
As a federal employee it is mandatory that we participate in direct deposit. When you are a new hire you have no other alternative. So I sure in a legal aspect it is legal for your company have you use it. I think the reason behind this is that your money goes directly to your account, there are no checks to be stolen and you would never be able to claim you never were paid. I like the direct deposit for the convience of having my money in my account first thing on Fridays, I can go out on Thursday write a check and know they'll have the money come Friday.
 
I don't know if there's any legal requirement that employers pay people in any particular way?
 

We require our employees at our out of state location to do direct deposit....otherwise they would never be paid on time.
 
If we had the option of doing a certain amount or splitting it between more than one account then I'd leave it as is. I'm getting ready to change accounts and thought it would be easier to get a papercheck and divide the money according to how I have checks written for atleat one pay period or two at most.
 
I don't know why it would really matter. Maybe it is more paperwork for them if you don't.

I remeber when I worked at a department store, I HAD to have a store charge card. That is the only way I could get my employee discount. The discount wasn't shown on my recipt, but on my bill.

I hated it, the interest was something like 20%! I always made sure to pay that bill in full!
 
The way our company got 100% direct deposit participation is that if you chose to get a paper check, they would mail it to your home at 5p on payday - it wouldn't even leave the office until the next day.
 
No other option at my work either, but I wouldn't have it any other way.

I used to HATE getting a check and then having to find the time to take it to the bank. Bank hours don't fit well into my lifestyle. I still haven't deposited the checks we were given as Christmas gifts! (oooh - didn't think of that 'til just now - GOTTA do that. Not tomorrow though - I'd die before I'd go to a bank on a Friday!) With direct deposit, the money just appears. :goodvibes

Laurie :)
 
wvjules said:
If we had the option of doing a certain amount or splitting it between more than one account then I'd leave it as is. I'm getting ready to change accounts and thought it would be easier to get a papercheck and divide the money according to how I have checks written for atleat one pay period or two at most.


Are your accounts at the same bank? You can have the one account set up to automatically deposit funds into another account. We do that from our checking to savings each pay period.
 
wvjules said:
If we had the option of doing a certain amount or splitting it between more than one account then I'd leave it as is. I'm getting ready to change accounts and thought it would be easier to get a papercheck and divide the money according to how I have checks written for atleat one pay period or two at most.

So they don't have the option of spliting the check between multiple accounts, and that's why you'd rather have a paper check?

Does you new bank have either online or telephone banking? If so you can easily transfer funds around once the check is deposited. It's an extra step over direct deposit to multiple accounts, but IMO it's still easier than going to the bank and doing it in person.

At my bank I can also set up automatic funds transfers ahead of time, check if your bank does too. This could be the solution you're looking for.
 
It is regulated on a state-by-state basis so, yes, it is possible that your employer can require it. I know they can't require payroll to be done as a direct deposit in the state where I live but they do allow companies to require you to take your expense reimbursements as direct deposits.
 
Depending on your state, yes, they are within the law to require direct deposit. I don't know about WV specifically.
 
Two different banks. I'm leaving mine b/c it sucks. lol

Now another quesiton about this state law thing...our corporate office is in another state. Which laws do they go by? Our location or theirs?
 
The last 2 companies I have worked for - including my present company - require you to use direct deposit. In fact, at my present company, they no longer print the stubs. Everything is on-line.

Using Direct Deposit also has another advantage...I get paid every other Friday, but my check is direct deposited on Thursday night. So, the money is in my account before the bank even opens on Friday. :cool1:
 
I still don't understand what the problem is. It isn't like you tear a paper check into two to deposit in two separate accounts, you still have to either withdraw cash or write a check from one account into another, how does having direct deposit make that harder?
 
pozey, my direct deposits at my current bank don't post until friday afternoon. Everyone elses posts thursday night (different banks).

I suppose its just as easy to write a check from one account to another. But that really wasn't my question. I wanted to know if it was legal for them to require direct deposit.
 
Two different banks. I'm leaving mine b/c it sucks.

Can't you simply ask your employer to change your direct deposit? Surely, not everyone in the whole company has an account at the same bank. They may require you to use Direct Deposit but they can't tell you where you have to do your banking.
 
Now another quesiton about this state law thing...our corporate office is in another state. Which laws do they go by? Our location or theirs?
In my company, on payroll related matters, we follow the laws of the state in which are employees are located. So in MA, we can't require direct deposit but in other states we can.
 
How about getting your paycheck while on vacation; or when you are home sick. I don't understand why everyone isn't on direct deposit. Its is just one of the best things around.
 


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