Complete Labor Law Poster for $24.95
from www.LaborLawCenter.com, includes
State, Federal, & OSHA posting requirements

Announcement

Collapse
No announcement yet.

Can a emplolyer force a direct deposit

Collapse
This topic is closed.
X
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Can a emplolyer force a direct deposit

    My employer is saying that I have to do direct deposit or not get paid.

    No more paper checks.

    Im in Arizona.

    Is this legal

  • #2
    According to my source, in Arizona, no, this is not legal. They cannot require you to do direct deposit.

    However, I would ALWAYS take direct deposit if available. There are a great many advantages to it. What is your objection?
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

    Comment


    • #3
      Originally posted by Xymox View Post
      My employer is saying that I have to do direct deposit or not get paid.

      No more paper checks.
      I hope that, one day, there will be no more paper checks required anywhere.

      Direct deposit saves a lot of hassles, liked lost paychecks. We had an employee, quite recently, was sent two checks by mail. He never received them, but had moved out of state. We stopped payment on the two checks and sent a new check to his new address. He did not receive it. We stopped payment on that check and sent another one. Same result. He did not get the check and it was not returned to us. Another stop payment and another check prepared for the employee. We refused to mail it and the employee finally came to the office and picked up his pay.

      Luckily, our bank does not charge for stop payments that we do on line, otherwise it would have cost us a bundle.
      Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

      Comment


      • #4
        Well my question is not about the wisdom of direct deposit, its about a few hundred people being forced to do direct deposit with the threat that they will not get a check unless they do direct deposit.

        Who do i contact in the government to investigate this issue ?

        Our upcoming check on the 7th is going to be the issue.

        Comment


        • #5
          Start with the state department of labor.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

          Comment


          • #6
            Okay, off my soap box.

            Apparently Arizona does not allow employers to mandate direct deposit.

            http://www.azleg.gov/FormatDocument....23&DocType=ARS

            C. Each employer shall, on each of the regular paydays, pay to the employees, in lawful money of the United States, or in negotiable bank checks or, in the case of the state or any political subdivision thereof, warrants payable on demand and bearing even date with the payday or, with the written consent of the employee, by deposit on the payday to the employee's credit at a financial institution of the employee's choice which is a member of the federal deposit insurance corporation or of any other comparable federal or state agency, all wages due the employees up to such date, emphasis added

            You can complain to the Industrial Commission (Arizona's name for Department of Labor). http://www.ica.state.az.us/

            The employer will get investigated and this good idea will be stopped. Hundreds of people will get to continue receiving paper checks that they will lose. Eventually, they will leave. The employer, looking to hire folks to replace them, will insist that the new hires agree to be paid by direct deposit. You consent to direct deposit, you get hired. You don't, you won't. Pretty simple. I don't know when I climbed back on the soap box, but I am off it, again.
            Last edited by ScottB; 11-02-2006, 01:29 AM.
            Senior Professional in Human Resources and Certified Staffing Professional with over 30 years experience. Any advice provided is based upon experience and education, but does not constitute legal advice.

            Comment


            • #7
              I'm still waiting for specific objections to direct deposit, other than the fact that the employer wants it.
              The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

              Comment


              • #8
                Originally posted by cbg View Post
                I'm still waiting for specific objections to direct deposit, other than the fact that the employer wants it.
                Me, too. In all the years of my working life (which is getting longer by the moment) when I've been given the option of direct deposit, I've always signed up and NEVER had a problem. Of course, when you're the payroll manager for your company, you have a vested interest.
                I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

                Comment

                The LaborLawTalk.com forum is intended for informational use only and should not be relied upon and is not a substitute for legal advice. The information contained on LaborLawTalk.com are opinions and suggestions of members and is not a representation of the opinions of LaborLawTalk.com. LaborLawTalk.com does not warrant or vouch for the accuracy, completeness or usefulness of any postings or the qualifications of any person responding. Please consult a legal expert or seek the services of an attorney in your area for more accuracy on your specific situation.
                Working...
                X