Direct Deposit Policy
CRS8383
29 Posts
I had a question(s) for those of you with a policy requiring direct deposit. I am fairly familiar with all of the rules you must comply with when you go about requiring direct deposit (free access to money, guaranteed account, etc.). My question is two fold. First, how was it recieved by the employees? What lessons learned can you share?
Second question. My payroll clerk just returned from a seminar where the instructor stated that you could require a new employee to sign-up for direct deposit. However, if after they begin employment they request to cancel direct deposit and recieve a live check, the company must allow it. I had never heard of this before and it made absolutely no sense. Any help appreciated.
Second question. My payroll clerk just returned from a seminar where the instructor stated that you could require a new employee to sign-up for direct deposit. However, if after they begin employment they request to cancel direct deposit and recieve a live check, the company must allow it. I had never heard of this before and it made absolutely no sense. Any help appreciated.
Comments
Most employees didn't have a problem with it, but a few die-hards had to be dragged kicking and screaming into it. In the end, we didn't lose any employees over it. We're highly unionized and I was able to put it in all six of our labor agreements over the course of a few years, so that ended any discussion from union employees, and we just adopted the rule for our non-union employees. We did some 'selling', including the savings over hard copy checks, multiple account availability, etc. and we're now close to 100%. Pretty soon I'm going to have to give my boss the ultimatum; sign up or don't work here any more. We'll see how that goes.
Check your state regs to besure you can make it mandatory in your state.
Hunter is correct - this is a State specific law.
We tell all job applicants DD is mandatory and if they're hired and don't get signed up within two pay periods, employment is terminated. We do employ several minors who typically don't have a bank account set up yet. So we instruct them to set up the checking or savings account with their first paper check and return immediately with the DD authorization. If they don't get it within two pay cycles, they're gone. Only had to do that once, though!
We chose the two pay cycle time period because some banks refuse to accept payroll on the first submission, choosing to use the first submission as a trial run. So the second EFT is what actually gets the ball rolling.
My current employer makes it optional. All exempts opt in. About two thirds of the non-exempts opt in.
needless to say, everyone is on direct deposit!!!
good luck!