Employer Requiring Direct Deposit....Legal?

Sick03Vert

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So I just thought I'd get some opinions, maybe from some of the more "legally-informed" members as I know we have quite a few here:

Received notice from my employer today that they are requiring direct deposit effective immediately.

This doesn't really matter to me, as I've had direct deposit for years, but doesn't your employer have to give you the option of receiving cash or check as well? At least that's how I interpreted the DOL law on the matter:

"Section 30c Payment of Wages
30c00 Method of Payment



The payment of wages through direct deposit into an employee's bank account is an acceptable method of payment, provided employees have the option of receiving payment by cash or check directly from the employer. As an alternative, the employer may make arrangements for employees to cash a check drawn against the employer's payroll deposit account, if it is at a place convenient to their employment and without charge to them. (Field Operations Handbook, 12/9/88)"

Granted, in Texas, there is a state law that says:

"Texas Law on Direct Deposit of Wages


In 2003, Texas law was amended by HB 3308 to add a direct deposit provision to Section 61.017 of the Texas Payday Law. New subsection (c) provides that an employer may elect to pay wages via direct deposit to employees who maintain suitable bank accounts, as long as the employer gives at least 60 days' advance written notice of the adoption of the direct deposit wage payment system and obtains from the employees whatever information is required by their banks to commence such deposits. Direct deposit wage payment was already possible under the Texas Payday Law - the change was basically to make that option clear. However, the problem with the amendment is twofold:
1.
The state law does not overcome whatever objections the DOL and the EEOC may have toward such a system under the federal laws they enforce.

2.
The new provision allows direct deposit of wages for employees who already have bank accounts. It does not expressly state that an employer may require an employee who does not maintain a bank account to establish one. This ambiguity will probably leave many employers in doubt as to their position regarding direct deposit of wages."

So I'm curious, because our employer says you HAVE to have a bank account to get paid. No alternatives. ZERO. And it is effective TODAY. No notice.

Is that a legal implementation of direct deposit?

Thanks in advance. :beer:
 

trc46

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Yeah I wouldn't be happy, so basically you can't work there without a bank account?
 

Sick03Vert

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Yeah I wouldn't be happy, so basically you can't work there without a bank account?

Yes sir, that is correct. Again, I personally have direct deposit, but MANY of our employees do not. Some don't trust banks, but most just want a check in hand. Now....not going to happen.:nonono:
 

Zerohe

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Ehh who doesnt have a bank account with DD? Paper Checks are Antiquated. Some employers dont even cut or issue paperchecks. not even for your first week.
 

DHG1078

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That doesn't really make sense to me. Don't they still hand out pay stubs? They at least have to make the pay stubs available in case someone wants to buy a house or car or something. How big is your company?
 

DHG1078

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Ehh who doesnt have a bank account with DD? Paper Checks are Antiquated. Some employers dont even cut or issue paperchecks. not even for your first week.

I don't have direct deposit. I don't even think its an option here. It doesn't matter to me though since I can just deposit it on my phone, but the bank isn't out of the way for me either.

Some people can't hold a bank account. I am just talking about those you couldn't trust with a bag of dirt though. My mother-in-law recently co-signed on a checking account for one of her low life friends (never worked a day in her life, total junkie, etc.) since she couldn't open one without it. Didn't take long for her to start depositing fraudulent checks and lost the bank account.
 

AntiHeightPunk

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That doesn't really make sense to me. Don't they still hand out pay stubs? They at least have to make the pay stubs available in case someone wants to buy a house or car or something. How big is your company?

You can just print off bank statements
 

Booky

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That doesn't really make sense to me. Don't they still hand out pay stubs? They at least have to make the pay stubs available in case someone wants to buy a house or car or something. How big is your company?

Everything is electronic for my company.

You can go to their web site and veiw or print anything that you need, going back several years, including all paycheck information and all W2 information.
 

BDFabrizio

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I work for the federal government, the job announcement even said direct deposit is required. I don't think I could get a paper check even if I wanted.
 

Sick03Vert

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That doesn't really make sense to me. Don't they still hand out pay stubs? They at least have to make the pay stubs available in case someone wants to buy a house or car or something. How big is your company?

We are a 5-dealership chain. No access to any electronic information for employees. However, we do still get pay stubs.

There are A LOT of entry level employees who are upset about this change and questioning the legality of the action. Personally, I'm 500% against it because I believe forcing anything on people is wrong, particularly when it comes to someone's paycheck.

Checks may be expensive, but we employees get paid shit so they can afford it. It's funny....it doesn't even affect me, but I'm pissed about it because I disagree with it so much. :shrug:

You dare not mention it to any manager though because you get the whole "This is Texas, we do what we want, you have no rights!" speech.
 

Chosyn1

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I work for the federal government, the job announcement even said direct deposit is required. I don't think I could get a paper check even if I wanted.


this^^^ same thing w/ military pay and generally anything coming from DFAS..
 

2014GT

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I think you should have the option. We don't offer direct deposit. I wish we did.

I have employees though that on every payday come in early, wait on their check, then spend the afternoon cashing it and bullshit so they have gas money to get home. Also, when they are out of town we have to overnight checks and all kinds of crap so they have money to get home and stuff. All of these people have no bank accounts, they really should, it would save so much hassle and wasted time and money. BUT, it's their right to not be forced to have a bank account.

Their argument is that if they deposited their check they wouldn't have the money instantly. They'd rather spend a couple hours driving around cashing checks and taking off early to do so than to just deposit the damn thing and have the funds the next business day.
 

Zerohe

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I think you should have the option. We don't offer direct deposit. I wish we did.

I have employees though that on every payday come in early, wait on their check, then spend the afternoon cashing it and bullshit so they have gas money to get home. Also, when they are out of town we have to overnight checks and all kinds of crap so they have money to get home and stuff. All of these people have no bank accounts, they really should, it would save so much hassle and wasted time and money. BUT, it's their right to not be forced to have a bank account.

Their argument is that if they deposited their check they wouldn't have the money instantly. They'd rather spend a couple hours driving around cashing checks and taking off early to do so than to just deposit the damn thing and have the funds the next business day.

Thats what im saying though.... My dad used to be one of those types. Would rather walk around with a big wad of cash in his fists than use a bank. Well my mom finally had put a stop to it. Old school or just plain irresponsible, you decide

They're putting an hurdle upon the company by not having a bank account. paper checks cost. I know the last place i contracted out too, they were adamant about forcing DD. They were spending $12,000 a month cutting checks.

who the heck doesnt have a bank account?
Why? WHY dont they? it takes 2 minutes of internet searching to find a bank that offers free checking.
 

Sick03Vert

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Why? WHY dont they? it takes 2 minutes of internet searching to find a bank that offers free checking.

^This is EXACTLY what my boss said when I questioned it. But the simple answer is, this is America and they have a right not to have an account simply because they don't want one. They don't have to prove to you WHY they don't have one, or have it ok'd by you. All that should be said is, "I don't have an account." and "Okay."

When you start forcing policies on people, you become no better than the government that's ruining this country. IMO.
 

YJSONLY

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My wife works at a bank and most people who don't have a bank account that she sees have wrote off accounts for either bad checks or borrowing money and not paying it back. If they have an account they can take back their past accounts but if you cash it they cannot.
 

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