Mandating direct deposit employees
Oregon’s wage and hour law requires every employer to pay employees all wages due and owing on a regular payday. As with everything, methods for paying wages have evolved over time.Payment by check and even cash remains a standard practice for some employers (though we’d recommend getting a signed receipt whenever paying wages in cash).Another potential land mine: Some organizations offer employees the option of receiving pay via payroll access card.Employers deposit wages directly into an account that employees can access using an ATM-like card.But can you mandate that all employees must receive their wages through direct deposit? But because those state laws provide less protection for employees than the federal FLSA, the federal law takes precedence.Bottom line: Even if your state seems to allow compulsory direct deposit, your organization must comply with FLSA regulations, which say that direct deposit is one option but not the only option. Most remaining states, other than the 12 mentioned above, either have no state law on the issue or allow payroll direct deposit with employees’ prior consent.This may mean processing the paper check even though an additional deposit will be paid to the ex-employee’s account in three days.
We urge you to check the applicable statutes and administrative rules yourself and to consult with legal counsel prior to taking action that may invoke employee rights or employer responsibilities or omitting to act when required by law to act.Those cards can comply with FLSA direct-deposit requirements only if employees incur no fees for using them.If you were looking for a section of the Michigan Compiled Laws, it might have been repealed.Almost all automatic teller machines carry only bills and require withdrawals be made in multiples of .Since net wages rarely divide up so neatly, the employer may need to ensure employees have the option to present their card at a teller window to withdraw the full net amount - without incurring a fee.