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Late Direct Deposit Pennsylvania

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  • Late Direct Deposit Pennsylvania

    The company I work for started offering direct deposit about eight months ago. At the time we were paid on the 1st and the 15th of each month. Since getting DD, I usually don't receive my check until three or four days after payday. I think the payroll department isn't depositing the money until payday rather than ahead of time like other companies I've worked for. I can't get a straight answer from management as to why this is.

    Is this legal?

  • #2
    If payday is the 1st and the 15th, then the bank has until the end of that day's business to post the deposit. It should be very easy for you to confirm the posting date to your account. Online banking, IVR on the phone, ATM balance inquiry.

    If you had prior employers where the bank was posting the deposit to your account earlier than payday, either the employer had the wrong settlement date on the file or your BANK was the one making the error by giving you access to the funds before the specified settlement date.
    Last edited by Pattymd; 08-13-2009, 09:23 AM.
    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
      Agreed. Past that, there are basically four different parties involved: the employer, the employer's bank, the ACH (sort of a non-profit, non-governmental banker's club), and the employee's bank. The employer sends a "file" (electronic formated instructions) to their bank (maybe directly, maybe through an outside payroll service provider). Once the file is sent, everything is pretty much a thrown rock as far as the employer is concerned. There is a settlement date in the file, but what the other parties do with that settlement date is pretty much up to them. The ACH rules are written by bankers in such a way as to protect banks from their customers (employers and employees).

      3 or 4 days after pay day is a long lag. It implies that the employer is either transmitting the file late or is playing games with the settlement date. Of course, banks do not always pay much attention to the settlement date. Like I said, once the file is set, the employer is pretty much out of the game.

      In my experience, assuming that all of the other parties are cooperating, it takes 2 days (local) or 3 days (non-local) to get the money in the employee's account. Whether the funds are deposits early morning or very late evening is solely a function of the employee's bank. If I processed payroll late Monday, I would expect the employer's bank to get the instructions early Tuesday (day one). I would expect everyone local (say all of Northern California if I am in San Francisco) to get paid sometime Wednesday (day 2). Could be early in the day or late in the day. Either way, that is solely the decision of the employee's bank, not the employer. Employees outside of the local ACH area are complicated. Some of them tend to get paid on day 2 but others on day 3. If I am transmitting from CA, my FL employees tend to get paid on day 3. I have had people assure me that it cannot be more then 2 days, but I have had many employees assure me otherwise.

      Just a thought, but maybe the OP should talk to their bank. Find out when the settlement date was and if possible, when the original transmission occurred. I am pretty sure that the recipient's bank can find out those things, but am not sure that they will feel like sharing.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

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      • #4
        And, OP, by "check" did you mean your paystub or the actual deposit to your account? With direct deposit there IS no check.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          Originally posted by Pattymd View Post
          And, OP, by "check" did you mean your paystub or the actual deposit to your account? With direct deposit there IS no check.
          Semantics. While it's not a physical check, it's still a paycheck to me.

          What I meant was that the deposit is not in my bank account until several days after payday. The payroll service that processes DD for my employer takes three days to process everything before funds are made available to us. When we first went to DD they specifically told our internal payroll department to process everything 72 hours prior to payday. Instead they wait until the day we are supposed to get paid.

          For example, the 15th is a Saturday this month. Payroll will not process anything until Monday. That means I won't get paid until probably Thursday.

          This is entirely my employer's doing. Not the payroll company or the bank.

          I just want to know that if I'm supposed to be paid on the 1st and the 15th and I don't get paid until the 4th and the 18th (or the 20th in the case of this month), is that legal?

          Thanks to everyone for their help thus far.
          Last edited by MrPotatoHead; 08-13-2009, 11:51 AM.

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          • #6
            Semantics are important. A pay stub is not money (although wouldn't THAT be nice?).

            Then that is a problem because you are not getting paid on the regularly scheduled pay day. And I agree that if that it the case, it is almost certainly attributable to the employer. Having said that, it would be very easy for the employer to just say, OK, now payday is the 5th and the 20th instead of the 1st and the 16th.

            I'm not sure how far you want to take this. Yes, you could file a wage claim with the state DOL. But also yes, it's going to go near the bottom of the priority list. Claims are worked in order of urgency and employees who have not been paid for weeks are going to be at the top of the list. A claim that states the employer pays 3-4 days after the defined pay date isn't going to be a high priority for them. Just saying, realistically.
            Last edited by Pattymd; 08-14-2009, 07:50 AM.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              I kinda figured as much, but I wanted to be sure.

              Thanks Pattymd!

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