Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Mandatory Direct Deposit

Discuss Labor Laws

Mandatory Direct Deposit

Postby Branhard » Sat Sep 20, 2014 2:46 pm

Shannon

I am a NJ resident and work in NJ.

Can my employer force me to enroll in direct deposit?

And if they can't force me, can they charge me a fee to be paid by check? thanks

Joe
Branhard
 
Posts: 43
Joined: Tue Apr 01, 2014 8:38 pm

Mandatory Direct Deposit

Postby Herschel » Sat Sep 27, 2014 8:11 am

Here is the NJ labor law, verbatim, in regards to direct deposit of wages...

"(h) In lieu of paying wages directly to an employee in the manner prescribed in(d) above [(d) is by payroll check], an employer may arrange with a financial institution or financial institutions to pay the wages of an employee by direct deposit, provided that all of the following conditions are met: 1. The employee shall first consent in writing to the direct deposit of his or her wages; 2. Consent under(h)1 above shall be obtained by the employer without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the direct deposit arrangement; 3. Consent under(h)1 above shall not be a condition of hire or continued employment; 4. The employee's wages so deposited shall be subject to withdrawal and other disposition by the employee to the same extent and in the same manner as if such deposit had been made directly by the employee under(d) above; 5. The employee shall be furnished with a statement of deductions made from his or her wages for each pay period such deductions were made; and 6. The employee shall, on timely notice to the employer, be permitted by the employer to elect not to have his or her wages deposited in the manner prescribed in this subsection and to be paid his or her wages directly in the manner provided under(d) above or as provided under(i) below."

(i) is about the use of direct deposit debit cards, which I will not go into here.  

So, no, by NJ wage and hour law, you cannot be forced to enroll in direct deposit; You can decline if you'd like without fear of any kind of disciplinary action. As far as charging you a fee for being paid by a check, the law says this...

"(d) Except under the circumstances set forth in(h) and(i) below, payment of wages shall be in lawful money of the United States or with checks drawn on financial institutions where suitable arrangements are made for the cashing of such checks by employees without difficulty and for the full amount for which they were drawn.

(e) When a fee is charged for the cashing of a payroll check at the banking institution on which the check is drawn, the employer shall bear the burden of the fee.

(f) Where suitable arrangements are not made for the cashing of payroll checks as set forth in(d) above, the employer shall bear the burden of any fee charged to the employee for the cashing of such payroll check."

So, if the law states that an employer must make wages subject to the same withdrawal and disposition of a direct deposit, and that an employer must carry the burden of any fees associated to cashing a payroll check(at the bank the employer uses or any other bank if the employer does not set up an arrangement with one), then the employer cannot charge you a fee for paying wages by check.

Feel free to share the quoted information with your payroll person to make them aware of the laws stated. If you would like to take a copy straight from the NJ Department of Labor site, go here: http://lwd.dol.state.nj.us/labor/wagehour/lawregs/selected_nj_state_labor_law.ht...

and look under the heading "12:55-2.4 Time and mode of payment".

Hope this helps!

Shannon M. Reising, MSP, PHR  
Herschel
 
Posts: 36
Joined: Fri Mar 21, 2014 4:42 pm


Return to Labor Laws

 


  • Related topics
    Replies
    Views
    Last post