Mandatory Electronic Direct Deposit of Wages

This is a discussion on Mandatory Electronic Direct Deposit of Wages within the Salary & Workers Compensation forum, part of the LABOR & EMPLOYMENT LAW category; My employer is instituting a new condition of employment. They are requiring that we sign up for direct deposit of ...

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Old Sep 11th, 2008, 01:20 PM   #1
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Default Mandatory Electronic Direct Deposit of Wages

My employer is instituting a new condition of employment. They are requiring that we sign up for direct deposit of wages to our bank accounts (which is acceptable to us). They are also requiring that we agree to allow them (the employer) to access and deduct monies from our bank accounts in case they make a mistake and deposit the wrong amount into our accounts (NOT ACCEPTABLE TO US).
It seems to us that this practice would be tantamount to giving them our ATM cards and PIN numbers, not to mention the fact that they obviously don't trust us to repay them if an over payment is made.

My question: Is it legal in the state of Florida for an employer to require access to an employee's bank account as a condition of employment?

I am a retail store manager, and my staff has indicated to me that they will quit working for me rather than give access to their bank accounts. I don't blame them, nor will I agree to such a practice.

I will appreciate comments and suggestions. Please, time is of the essence, since our employer wants to start this program immediately.

Thanks
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Old Sep 13th, 2008, 12:51 AM   #2
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Default Re: Mandatory Electronic Direct Deposit of Wages

Yes, the employer has every right to withdraw a mistaken deposit made on their behalf. It does NOT allow them to freely go in and make whatever withdrawls they see fit.

Say for instance... their payroll person mistakenly hit a number and paid an employee, with direct deposit, for 800 hours of regular time at $20/hr. If that were the case, this person would have been able to slip through the cracks and payroll checks & balances would have been over paid by $14,400. If the employer doesn't have said arrangement with the bank, they cannot go in on the same day and reclaim the $12,800 overpayment the employee received. They would have to negotiate the return of this money and if met with resistance, would have to sue the employee for the rightful return of wages not earned by the indivdual.

That clause is standard. Just because it was desposited, doesn't make it yours.
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Old Sep 15th, 2008, 08:51 AM   #3
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Default Re: Mandatory Electronic Direct Deposit of Wages

Thank you very much for your reply and input.
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Old Nov 1st, 2008, 01:22 PM   #4
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Question Re: Mandatory Electronic Direct Deposit of Wages

My employer is requiring us to choose direct deposit or recieve a debit card instead of the the old paper check. I prefere direct deposit but my employer is stating that there will be no pay stubs givin and that I must go to a website to get that information. Can they do that?
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Old Nov 2nd, 2008, 06:19 PM   #5
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Default Re: Mandatory Electronic Direct Deposit of Wages

If it is reasonably available to you it normally is legal.

Call your state dept of labor too for any other applicable rules or local requirements.
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Old Nov 3rd, 2008, 11:38 PM   #6
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Default Re: Mandatory Electronic Direct Deposit of Wages

You would have to check with the State in which you work because there are different standards to conform to when a Company wants to go to online check stubs. In most cases, the company must provide computer access to all employees for the purpose of printing check stubs.
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Old Nov 5th, 2008, 08:11 AM   #7
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Smile Re: Mandatory Electronic Direct Deposit of Wages

Thank you for your reply, It's true that they plan to put up a computer terminal for employees to use. Thanks again.
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