Direct Deposit and Payroll

[Edward C. Bender]

It's interesting that all individuals (2) that posted an answer said it can't be forced, yet in HRNET I received a completely different set of answers.  Most of the people stated it can be required if an employee wanted to work in an out-of-state situation.  Hmmm.

Paul Jensen <PJe...@badsector.com> wrote in message news:%qNK5.1691$OG1....@newsfeed.slurp.net...

Edward C. Bender wrote in message ...

>Our company has several employees working in other states.  These states
>have no physical offices from which to disseminate paperwork, including
>payroll.  We also offer direct deposit to our employees.
>
>Can an employer require an employee working in one of these states to accept
>direct deposit of his/her paycheck, as a method of controlling costs?  I am
>aware that an employer must make an employees pay available to him/her on
>the stated paydays.  However, what other recourse can a company take should
>an out-of-state employee refuse to accept direct deposit?

 

As for requiring direct deposit, that varies from state to state, but generally the answer is that you cannot do that.  What you can do is give an employee an option:

 

1) Direct deposit.  Or

2) On Pay Day their paychecks will be mailed to them from the home office to their homes. 

 

With the second option, you will have met any requirements of making their pay available, but of course they won't get their paychecks until a few days after they would have received their pay via direct deposit.  This practice has an amazing effect on direct deposit participation.

 

Paul Jensen

Florida's Emerald Coast