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Mandatory Direct Deposit - VA Virginia

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  • Mandatory Direct Deposit - VA Virginia

    Here in Virginia, a friend of mine works for a company that just issued him a letter stating that he must accept payment of his wages via direct deposit or his employment will be terminated. I've been trying to find out for certain if this is legal in Virginia or not. I know it is in some states but not all. He works for a non-profit organization that provides employment to disabled workers (at ridiculously low wages I'd like to add). Since he isn't a government employee, I'd like to find current information that states whether or not is legal for his employer to force this on him. I've found some information dated early 2009 that says this is not legal in VA, but that could be out dated and I'm not 100% sure it legitimate.

    Thanks in advance.

  • #2
    NOT my state, so this will be a soft answer. Based on the actual law (see section "B" of the following), I would say that in VA that mandatory "pay card" is legal, but mandatory "direct deposit" is not. This section however just talks about payments and penalties related to not making the payment correctly. I do not know how VA would treat a related termination as you describe.

    Past that, I am not a termination expert, especially in VA. The possibility of a "public policy" exception should the termination occur springs to mind. However, I do not know VA law, and certainly do not know related VA court decisions on this subject. To the extent that terminations are illegal (most termination in fact are quite legal), this tends to be a narrow specialty area in the law. And if there is no applicable federal law (and there is none for your situation), then we are talking state law, which is all over the place (state to state).
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)


    • #3
      My ref. says more or less the same re "pay cards" & "DD" in Va.

      Employers cannot require the direct deposit of paychecks. However, if an employee who is hired after Jan. 1, 2010, fails to designate an account for the receipt of direct deposit, the employer may pay wages or salaries to such employee by credit to a prepaid debit card or card account.

      Employers may pay employees by cash, check, direct deposit into an account in the name of the employee at a financial institution designated by the employee, or by credit to a prepaid debit card or card account from which the employee is able to withdraw or transfer funds.
      Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

      Live in peace with animals. Animals bring love to our hearts and warmth to our souls.


      • #4
        Thanks for the input.

        I'm not sure what this company is trying to do but it's just come to my attention that they have been asking their employees for their debit card number and PIN number when they require these forms to be filled out. A lot of these people are mentally handicapped and do whatever is asked of them. I'll have to find out more about this and possibly get the labor board involved. This is looking more shady by the day.


        • #5
          Debit card # and PIN???? Thats a shocker and DD does not use that info. Soemthing sounds fishy to me