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direct deposit or paycheck Michigan

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  • direct deposit or paycheck Michigan

    Is Michigan a mandated state for Direct Deposit. Can the employer "inforce"/make the employee to get on Direct Deposit or some kind of PayCard?

    Is there any law or regulations how the employee receives his/her paycheck?
    Is there a time limit or does the employer have to mail the employees check certified?

    My company would like to put all employees on Direct Deposit or PayCard.
    We would like to mail all employees check to their home, is there any regulations.

    Does anybody know who I can contact. Any help is highly appreciated.

  • #2
    Mandatory direct deposit isn't allowed in Michigan for private employers. In 2004, the Governor signed a law allowing mandated direct deposit for certain "nonclassified" govenment employees. I don't know all the details about that, but I do know that no private employer can force direct deposit.

    Here's the statute:

    408.476 Wages to be paid in United States currency, by negotiable check, or by draft payable without discount; deposit of employee's wages in bank, credit union, or savings and loan association. Sec. 6. 1) The payment of wages shall be paid in United States currency or by a negotiable check or draft payable on presentation at a bank or established place of business without discount in United States currency.

    2) An employer or agent of an employer shall not deposit an employee's wages in a bank, credit union or savings and loan association without the full, free and written consent of the employee or prospective employee, obtained without intimidation, coercion or fear of discharge or reprisal for refusal to permit the deposit.


    • #3
      But, what about the debit card?
      Please no private messages about your situation.


      • #4
        Unfortunately, most state laws have not kept up with the technology of pay cards. I'm not where I can check right now.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


        • #5
          It is fairly common for state law to be silent on things like debit cards. Paying employees is a function of state law and 50 states mean some very different state law handlings are out there. Some people take that to mean that if the law does not specifically mention something like debit cards, that it must be legal, moral and non-fattening. Maybe. Maybe not. In some parts of the country that is called "guessing" and tends to yield unpredicable legal results.

          There is some advantage to having employees voluntarily sign up for direct deposit or debit cards or whatever some slick salesperson will be selling next year. Even if the law does not specifically mention the payment mechanism, if the employee voluntarily signs up for it, future litigation by the employee would seem to be limited.

          In the specific case of Michigan and debit cards, my notes (BNA payroll library) say:

          Payroll Debit Card — Wages may be paid by payroll debit cards with the written consent of employees, obtained without intimidation, coercion, or fear of discharge or reprisal for refusing to accept payment by debit cards. An employer, however, that pays wages by debit cards to one or more of its employees may pay wages to any of its employees by debit cards without obtaining consent. Employees may not be charged any fees or costs associated with payment by debit cards. (Mich. Comp. Laws Ann. ยง 408.476, as amended by S. 851)
          Last edited by DAW; 08-15-2007, 11:54 AM.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)


          • #6
            Thanks for the support.

            Can anybody help me about Michigans regulation on mailing paycheck to the employees home. Is there a timeframe?


            • #7
              Generally speaking, most state laws allow for the mailing of paychecks if posted no later than pay day, especially if another option for pay, such as direct deposit, is offered. I couldn't find anything in Michigan wage payment law that specifically prohibits doing so.

              If you are going to consider this, and I'm assuming you are, as a "stick" to encourage direct deposit, make sure you communicate with plenty of advance time before it starts. You also might want to have a "carrot" as well. has some good DD campaign ideas.
              I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


              • #8
                The cost of postage is most likely the reason why your company does not want to send checks to homes.
                I know everyone has their own preferences, and there may be more involved, but why people would prefer checks that take time to clear rather then instant cash deposited is beyond me.
                The only ones I ever came across that prefered checks were illegal immigrants who didnt have a SSN and coulnt open a bank account.
                Your options in the workplace are the three "L's"- Live with it, Lobby for change, or Leave. Screaming for an attorney will do no good most of the time.


                • #9
                  Yes we do have the problem with illegal immigrants as well. That's one reason we like to push direct deposit/Debit Card or give the options mailing the check home. Most employees don't even have an updated home address. Go figure.


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