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Direct Deposit

Discuss Labor Laws

Direct Deposit

Postby Fitzgibbon » Thu Oct 16, 2014 12:14 am

My wife's employer offers Direct deposit but often does not come through with the deposit but instead issues paper checks. There is little to no advance notice to which will occur for any given paycheck.

Is the employer required to abide by this agreement once you are enrolled or can they at their discretion and with no advance notice switch back and forth?
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Joined: Mon Jan 06, 2014 4:21 pm

Direct Deposit

Postby Blagdan » Sun Oct 19, 2014 6:39 pm


The California Labor Code itself does not directly address your question.  It permits employers to use direct deposit with the written consent of the employee but, once consent is given, the law does not require the employer to consistently use direct deposit.  There could be an exception if the consent form itself contains an express or implied promise that wages will consistently be paid via direct deposit after employee consent is given, so if you still have the form take a look at it and find out what it says. Otherwise, as long as the checks are good, the amounts are correct, and they are delivered to the employee no later than the scheduled payday, it seems not to be a violation of the law to flip back and forth between paper checks and direct deposit.

Nevertheless, it can't hurt to contact the Department of Labor Standards Enforcement to talk with someone on the staff there.  Here is a link to a page on their web site which summarizes the California law on wage payments and provides contacts and other information you might find helpful.  I did not find any references to your issue on the site or in the DLSE's Enforcement Manual(downloadable from their web site), though it's possible that a similar situation in the past has occurred which is not reflected in the summary, and in which the DLSE may have acted on a complaint against an employer.http://www.dir.ca.gov/dlse/faq_paydays.htm

I hope you and your wife are able to resolve this issue satisfactorily.
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