I have automatic deposit of my paycheck with my employer and have had this arrangement for the past 2.5 years. We are paid twice a month, on the 15th and the last day of the month. Last Friday, I was handed my paycheck in a sealed envelope like I always get it and put it in my briefcase relying on that fact that it was deposited in my checking account. Today I was checking my bank account and did not see the payroll deposit. I retrieved my paycheck from my briefcase and was surprised to see that instead of a direct deposit notice, I had a live paycheck. Needless to say, I have automatic deductions, such as my mortgage, set up from my checking account. These were not paid and $20.00 fees for each "bounced" deduction has been assessed against me. I also contacted one of my co-workers who confirmed that her paycheck was direct deposited last Friday.

Does my employer have to notify me if they are going to change the method of payment of my paycheck? If so, if notice is not provided what can I do? Are they liable for the fees incurred because the money was not in my account?

Just goes to show you should look at your pay document immediately. Or at least, check your balance online. I don't know of any legal requirement to inform you that your pay is a check this time, although if a direct deposit transaction in the wrong amount and it was reversed (for whatever reason) the employer does need to inform you.

It's possible that an error was made in payroll, resulting in the need for a special check. It's your responsibility to make sure that you have the funds in your account before your automatic withdrawals are processed. In my not inconsequential years as an HR/Payroll professional, I would not consider reimbursing you for NSF fees.

Hey Shelby,

Clearly a mistake was made, and there were unfortunate results. I doubt that "most" employers would do something purposely to cause negative impacts on an employee. Although, I realize that not all are alike.

I would recommend you talk to your employer first, and explain the situation. You may be surprised, at their response. I'm sure they wouldn't want this to occur again to you or other employees...

As mentioned earlier, I doubt that the company would reimburse for the NSF.

Just to let everyone know, my employer admitted that they made an error and ARE going to reimburse me for the Overdraft Protection fees (the fees were not NSFs...) in the amount of $160 as well as give me a letter stating that it was their fault due to a "processing error"... at least some HR professionals recognize the value of rectifying the situation to EVERYONE'S satisfaction.

Well, then good for them. They did more than most would, plus the law doesn't require that they do anthing. However, my original statement stands that you bear some responsibility here.