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Mandatory Direct Deposit - Alabama Alabama

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  • Mandatory Direct Deposit - Alabama Alabama

    I would like to make it mandatory to pay all wages via direct deposit, is the legal in the state of Alabama?

    Thank you.

  • #2
    My source is not available to me at the moment. If no one responds with an answer by tonight, I'll post what I have at home.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      My sources indicate that Alabama does allow for mandatory direct deposit.
      Last edited by tangel; 07-28-2008, 10:02 AM.

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      • #4
        Private employers in Al. may require direct deposit, but public-sector employers may not.
        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.

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        • #5
          A couple of caveats though. Your employees can not incur any charges as a result of mandatory direct deposit.

          You could also be setting yourself up to a disparate impact claim, because certain demographics may be more unbankable then others.


          Both problems can be solved by making an arrangment with a local credit union or bank.

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          • #6
            And the only provision is that the employee must be able to choose the financial institution.

            You can make it a condition of employment if you are a private employer. However, I've been in payroll for many years, and I think you need to think about the drawbacks as well as the advantages (and I am a great supporter of direct deposit). Are you going to prenote? If so, you will have to pay by check during the prenote period; also, the same when the employee changes banks or accounts. What happens if the employee revokes his instructions (say, for example, closes his account and doesn't provide another account)? Are you going to fire him?

            When it comes to direct deposit, I'm much more of a carrot advocate than a stick advocate.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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