Can employers force you to

[wvjules]

I only want a paper check for two pay periods. I understand the convenience of DD for everyone involved. This was just a temporary request to not have it for a month so I could get stuff switched. There's no way I'd want a paper check forever. I love DD but just wanted to have it changed for a brief period of time.

Now I hope I have enough checks left for the old account to write checks to the new one as needed.

 

[pozey]

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.

The timing of the deposit, I suppose, would depend on both when the employer sends the data file to the bank, and when the bank receives and processes the data file.

I don't know the legality of requiring direct deposit, but more and more companies are going strictly direct deposit because of the cost savings. You could talk to your HR department and ask them if you could get a paper check. However, this might cause your company quite a bit of inconvenience depending upon what programs they will have to modify to cancel processing your check for direct deposit, and to then turn around and modify another program to print a paper check. This would depend upon the size of your company's payroll department.

 

[CajunDixie]

Now I hope I have enough checks left for the old account to write checks to the new one as needed

If you run out of checks you should be able to go into the old bank and request a few counter checks.

 

[C.Ann]

For those who get paid on Friday, "but their money is in the bank on Thursday night" due to direct deposit, be very, very careful.. I know several people who were stung badly when they spent money "assuming" it was already in the bank and posted to their account..

Social Security can and does force direct deposit - however, the veteran's pension group can't (yet) - although they push pretty darn hard to get you to do it..

 

[pozey]

For those who get paid on Friday, "but their money is in the bank on Thursday night" due to direct deposit, be very, very careful.. I know several people who were stung badly when they spent money "assuming" it was already in the bank and posted to their account..

Social Security can and does force direct deposit - however, the veteran's pension group can't (yet) - although they push pretty darn hard to get you to do it..

It is never a good idea to spend money that you don't have. However, since I was the software engineer who wrote the payroll program at my previous employer, I knew when the data file was transmitted to my bank. And that is all that direct deposit is in its simplest form - a data file.

 

[iNTeNSeBLue98]

I only want a paper check for two pay periods. I understand the convenience of DD for everyone involved. This was just a temporary request to not have it for a month so I could get stuff switched. There's no way I'd want a paper check forever. I love DD but just wanted to have it changed for a brief period of time.

Now I hope I have enough checks left for the old account to write checks to the new one as needed.

I'm sorry if I missed this but skipping over most of the responses, but here is what I have experience with direct deposit in PA.

We can have our direct deposit split over two accounts but the accounts must be at the same bank. I have 95% going to our joint checking account and 5% to a checking account in my name only.

When changing banks there is a period of about two pay cycles for testing the ACH deposit. During that period you would be issued a "live" check.

If you do run out of checks at your current bank you could always request a few from the teller. I think you have to call to make the request so they can be printed with your account information. Otherwise, you could use cash or debit card.

 

[WDWAurora]

I work for the "City of ______" in NC, and it's definitely legal here. We had a new hire who did not want to have a bank account, but she still had to open one because we require everyone to do it. I was one of the last crossovers because I started working there, took 6mos or so off, then came back. The big push to switch everyone over was while I was out. I am fully in compliance now, and if I had wanted to, I could have chosen to split the money between 2 accounts.

 

[Fire14]

I wish my CO would offer DD. It would make my life 5000 times easier. I have had to ask co workers to deposit my check while on vacation and in one case I got called out of town suddenly b/c of a death and had to call work and beg someone to please deposit my check for me. I also hate having to drive into town to get check and deposit it in bank if i'm off night before/morning of payday ( it's a 15 min drive on a good day).

 

[battricia]

I have to say i'm really surprised that it's not illegal to force direct deposit for a number of reasons!

First what if you don't have or don't want a bank account. Often there are charges for having too little money in an account, which means every time your check is deposited money will come out of the check and be paid to the bank. And banks change this often and with little warning so it's possible that you might not know, or find out too late.

Also there is the fraud factor. What if someone happens to pick up on your account, say they steal your check book or mac card. They have access to that money that was deposited into your bank account! And it takes a good 2 weeks to get it switched over to a new account (Direct deposit), so it's possible that another check could be deposited into that account. or that you won't have access to the money in your new account until it gets switched over.

There are a number of reasons I don't use direct deposit .
Quite frankly i just don't trust it (reasons mentioned above, as well as having to give the company you work for your bank account information).

Also I like to keep 3 checks before depositing them, it's my own way of saving, and since all my bills are paid a week after I deposit them I know the money is there. It's my own banking technique, however it works for me, and i'd be fairly uncomfortable working for a company that requires direct deposit.

tricia.

 

[bigbabyblues]

It's now mandatory at the hospital where I work. MIL works at the library, she has been required for a few years. The last 2 companies DH has worked for has required it as well.

 

[Galahad]

IThere are a number of reasons I don't use direct deposit .
Quite frankly i just don't trust it (reasons mentioned above, as well as having to give the company you work for your bank account information).

So does this mean you don't e-file your taxes for a faster refund?

 

[Micca]

Our company has phased out paper checks. I too am a fan of direct deposit as our pay clears at 12:01am on payday and I would never get to the bank that early(or late!)

 

[m&m's mom]

It is never a good idea to spend money that you don't have. However, since I was the software engineer who wrote the payroll program at my previous employer, I knew when the data file was transmitted to my bank. And that is all that direct deposit is in its simplest form - a data file.

Unless you bank at the same bank as the company uses for their payroll checks, you can't know when the ach file was retrieved by your bank.

When dir dep file is created it goes to the originating bank 1st. That is usually the company's bank. That bank strips off from the file anyone that banks there, funds are verified and then the file goes to the Federal Reserve.
It is up the the receiving bank, usually employees bank, to retrieve and process the ach (automated clearing house) file from the Fed Reserve.
For those that get paid the night before, the bank is slightly jumping the gun on the "effective date" of the file.
The banks have up until midnight the day of paydate to post the ee's dir dep.

 

[popeyeohoh]

Why would you not want direct deposit? Funds directly deposited electronically are available for withdrawal immediately, not so for checks deposited. Next day availability on those funds.

 

[m&m's mom]

Did Dep is very much less expensive for them.
1st there is the reconcilaition costs. A very big headache for large companies No checks = no reconciliation.
Also, less stop pays from ee's losing their checks.
And finally, if no checks floating around, less chance of fradulant activity.

 

[m&m's mom]

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.

The posting time difference is caused by your bank not retrieving or porcessing the ach file as quick as the other persons bank.

Yes, you can be required to have dir dep (at least in OK and TX). The exception is when you change banks.
The best thing to do is to set up the new bank acct w/ your employer while the 1st one is still active. That way the 1st acct will still go while the 2nd one is prenoting (the typical 10 days your bank has to verify the new account and routing number is valid). Then when the prenote period is up you can just change over to the new one. Every employer should have that capibility if the offer dir dep. If not, you employer has to give you a paper check during prenote.

 

[m&m's mom]

I have to say i'm really surprised that it's not illegal to force direct deposit for a number of reasons!

First what if you don't have or don't want a bank account. Often there are charges for having too little money in an account, which means every time your check is deposited money will come out of the check and be paid to the bank. And banks change this often and with little warning so it's possible that you might not know, or find out too late.

Also there is the fraud factor. What if someone happens to pick up on your account, say they steal your check book or mac card. They have access to that money that was deposited into your bank account! And it takes a good 2 weeks to get it switched over to a new account (Direct deposit), so it's possible that another check could be deposited into that account. or that you won't have access to the money in your new account until it gets switched over.

There are a number of reasons I don't use direct deposit .
Quite frankly i just don't trust it (reasons mentioned above, as well as having to give the company you work for your bank account information).

Also I like to keep 3 checks before depositing them, it's my own way of saving, and since all my bills are paid a week after I deposit them I know the money is there. It's my own banking technique, however it works for me, and i'd be fairly uncomfortable working for a company that requires direct deposit.

tricia.

I don't mean to be rude but WOW! I am shocked someone in this day and age would stick w/ the ole "under the mattress" technique.
The fraud on physical checks vs. dir dep into a bank is overwhelming!
If a company does not have any physical checks floating around it basically drops the chances of someone fraudently duplicating those checks drops 99%.

edited to add that you are thinking about personal fraud and not your ermployers. If you do not have a bank acct then there obviously is not anything to "steal" but how do you pay your bills? If you do money orders that expnese and hassle has got to be great.
To each his own I guess.

 

[saucymb]

I have only worked at one company that requires direct deposit. It didn't bother me at all.

However, what did bother me is this: I was laid off from my job about 4 years ago. My bank started charging ME a $3 a month fee for NOT HAVING DIRECT DEPOSIT!!! I went in and talked to them, and explained that I would LOVE to have direct deposit, but I was unemployed, but they would not refund those fees and kept charging me! I had been with that bank for 5-6 years at that point, but I quickly closed my account and went elsewhere.

 

[Planogirl]

It's only a pain IMO when you first start out at a new workplace and you don't have an account set up just yet. I closed my account while I didn't work and didn't really have the funds to open the account I wanted before I got paid. Luckily, my company also pays using money cards and that's the option I chose.

 

[Free4Life11]

First what if you don't have or don't want a bank account. Often there are charges for having too little money in an account, which means every time your check is deposited money will come out of the check and be paid to the bank. And banks change this often and with little warning so it's possible that you might not know, or find out too late.

Well if you DON'T have an account then you must be going to a check cashing place and I've never seen one that didn't charge fees. Even Walmart charges $3 I think. Also, most major banks have a free or reduced fee checking for people that don't write a lot of checks/don't carry a high balance.

I can't imagine NOT having a bank account in this day and age.

I personally think direct deposit is the great thing since sliced bread. One of my jobs requires me to have direct deposit and the other two are optional.

At one of my previous jobs, if you have a bank account at Fleet you got your money on Thursday night since the company's account was at Fleet. But Fleet sucks -- I closed my account 4 days after opening it and stormed out of that place.