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Mandatory Direct Deposit

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Mandatory Direct Deposit

Postby Culain » Tue Jul 08, 2014 5:24 pm

The company I work for in PA, is trying to force the "old timers" to go on direct deposit instead of getting a paper check. It's my understanding they tried the same thing before I started there. The union told them that it was against the law. Is this still the case ? If you could help with where I can find the law, I would appreciate it. Thank you
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Mandatory Direct Deposit

Postby jolie » Thu Jul 10, 2014 5:53 pm

The employee must authorize the direct deposit.

The Pennsylvania Wage Payment and Collection Law requires the payments of wages be made in cash or check; The Pennsylvania Electronic Fund Transfer law allows payment of wages by electronic transfer whenever a party requests the method of payment in writing; The request must be in a written agreement that includes the terms under which a wage earner may withdraw the request and terminate the agreement; Unionized employees make their collective request through the terms of the collective bargaining agreement negotiated by their authorized bargaining agent(the "Union"). There was a court case that took place in PA that did uphold the employer is the matter of direct deposit and many companies use this to mandate direct deposit. Statler  v. U.C.B.R, 728 A.2d 1029(Pa. Cmwlth 1999) as a blanket justification for mandating that all employees submit to direct deposit.  In Statler, a union employee refused to sign a direct deposit authorization form as mandated by the collective bargaining agreement and the employee was fired. He was ruled ineligible for unemployment benefits because he engaged in willful misconduct because his refusal was unreasonable.

The Pennsylvania department of Labor and Industry will say to you that the direct deposit must be authorized by the employee.

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