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Forced direct deposit?

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  • Forced direct deposit?

    My employer is stating that I must select either direct deposit or an ADP pay card for my wages. I had brought to their attention that Illinois requires the option of cash or a paper check. They then countered to tell me that the ADP pay card package includes checks I can write to myself and that there is no requirement for an "Employer-issued" paycheck. This just seems a way to circumvent the rules. Advice? I am not a fan of either the paycard or DD.

  • #2
    You are correct and here is backup from FAQs here:

    "Is it a violation of the Wage Payment and Collection Act to offer an employee the choice of payment of wages through a payroll card or direct deposit without the option of a check?​

    Yes, as an employee must be offered the choice of payment by a check."

    You might call the Illinois DOL to see if the "check off of the paycard" is enough to suffice for this requirement.

    Honestly, as a payroll person, direct deposit is so very easy for both sides and always what I suggest unless you don't have a bank account. I don't like paycards at all personally.
    Last edited by hr for me; 02-21-2017, 10:21 AM.


    • #3
      This sort of question is always very state specific. As long as someone is paid, the feds literally do not care about the details. The FLSA says employees must be paid "when due", but all details are left to the state(s). And some states do not really have rules. Or enforce what rules they do have.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)