Mandating direct deposit employees

18 Apr

Direct deposit of pay has been available to all employees of the University of North Carolina at Asheville since July 1, 2007.Direct Deposit is an efficient way to make sure employees receive their pay in a timely and secure manner.As noted above, Michigan employers still cannot mandate direct deposit for all employees, but the new law moves us closer to that system.As before, Michigan employers can encourage employees to accept pay via direct deposit or a payroll debit card by paying employees who do on a different schedule (e.g., weekly or bi-weekly) than employees who opt for another form of payment (e.g., monthly).Federal Work Study students may opt-out of direct deposit by filling out a Direct Deposit Exemption Request Form.Temporary employees who are receiving only one or two payments are encouraged to enroll in direct deposit unless enrollment is not practical.

Any election to receive pay via direct deposit or a payroll debit card must be made freely, without intimidation, coercion or fear of discharge or other reprisal. An employer can make the payment of wages by direct deposit as a condition of employment without violating the Wage and Hour Act. Acceptable forms of payment include cash, money order, negotiable checks, and direct deposit into an institution whose deposits are insured by the It is entirely up to the employer to pay or not to pay some or all of its employees by direct deposit.Contact the federal wage and hour division in Please keep in mind that an employer cannot discriminate against its employees for reasons based on age, race, sex, religion, national origin, color, disability or pregnancy.For discrimination questions based on these protected categories, contact the Equal Employment Opportunity Commission (EEOC) at 1-800-669-4000 or visit the Web site at Lawyer Referral Service at 1-800-662-7660 or visit the Web site at