Direct Deposit

mrbill

Trying to impose mandatory direct deposit of weekly pay checks. Does anyone know of any regulations that mandate direct deposit ?
I am considering giving the employees until June 30, 2005 to sign up for Direct Deposit. Admittedly, if they don't, I don't know what I would do. Any Ideas ? Thanks,

marc

This comes down to what your state will allow. Not all EEs have bank accounts, so lots of states require the ER to have some provision for those EEs that cannot or will not get a bank account.

A recent thread discussed a bank-type card that you could "fill up" every pay period. I think the initial cost of set up was on the ER, but after that, lost or stolen cards were the responsibility of the EE.

Check with your State DOL, I bet they could tell you over the phone.

Brad Forrister

I think Massachusetts is one of the states without a statutory or regulatory impediment to requiring direct deposit. (If you find out differently from the state folks, please let me know.)

Brad Forrister
VP/Content
M. Lee Smith Publishers

cthr

The state of MA does allow Mandatory Direct Deposit as long as the employee chooses the financial institution.

HRCalico

I called the NE DOL a couple of years ago and got that info over the phone. (Yes, we can require and yes, we did. I left that job to get married before the problems hit.)

If they don't sign up - ask your DOL, but I'd say you can 1) do the card thing Marc mentioned, 2) terminate, or 3) (several people will jump on this for various reasons, I'm sure) look into opening an account in their name. I have no idea what is involved there.