Ohio direct deposit

Irie

Does anyone know the laws in the state of Ohio for direct deposit? Can we make it mandatory as long as the employee can choose their institution? I searched this site as well as the Ohio DOL and can't find anything. Thanks.

AnneHa

Yes, you can have madatory direct deposit in Ohio. I'll try to find the source for this info, but we researched it about three years ago and were informed that we could.

I know the ORC addresses the public sector - just not sure about private. And you must allow the ee to choose his own institution.

Anne in Ohio

Tony Kessler

AnneHa is correct. Fred G. Pressley, Jr., one of the editors of Ohio Employment Law Letter, says you can require direct deposit in Ohio -- as long as the employee can choose the financial institution. Fred is chairman of the Labor and Employment Department at Porter Wright Morris & Arthur LLP in Columbus and can be reached at [email]fpressley@porterwright.com[/email].

Irie

Thank you both for the information.

HRVolley

Here is a quick question regarding choice of the institution. We made DD mandatory also. We let employees choose thier institution. Those that did not currently have an account were given the choice to use a bank that we had an employee benefit banking agreement with. Apparently, some of our employees have either overdrawn previous accts. or are in bankruptcy and cannot open an account at ANY bank.
What should we do now.

Irie

Is it possible that the bank your company deals with will let employees open a debit-card only account? The funds could be deposited into these accounts and the employees would have access to their funds through a debit card. It's worth checking into.