State of Michigan Labor Law. Can an employer mandate a direct deposit for a paycheck?

Answer 1

408.476 Wages; payment methods; deposit of employee's wages in bank, credit union, or savings and loan association; issuance of payroll debit card; consent; fees or costs.

Sec. 6.

(1) An employer or agent of an employer may pay wages to an employee by any of the following methods:

(a) Payment in United States currency.

(b) Payment by a negotiable check or draft payable on presentation at a financial institution or other established place of business without discount in United States currency.

(c) Direct deposit or electronic transfer to the employee's account at a financial institution.

(d) Issuance of a payroll debit card to the employee.
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Senate Bill 851 - Passed:
The bill amends Section 6 of Act 390 of 1978 by providing for direct deposit or electronic transfer of an employee’s wages by the employer. Current language in the law prohibiting an employer from depositing an employee’s wages in a financial institution without full, free and written consent of the employee is deleted by the bill. The direct deposit or electronic transfer would be required to go to the employee’s account at a financial institution or to an account maintained by the employer in the name of and owned by the employee that is accessible to the employee by access device.

The department worked with Senator Allen on amendments providing for employee choice. The final version of the bill that passed the Senate included an amendment requested by Meijer providing for paycards. A paycard is similar to a debit card. It is a relatively new technology used by employers to pay employees electronically. The bill incorporates the employee choice concept into the use of paycards.

Answer 2

If you are paid monthly, there may not be a problem, because there are still 2 weeks to get the money into the payroll account. If you are paid every 2 weeks, stop unncessary spending. The state should have a 'Wages & Hours' (it would probably operate under a different name) commission to regulate or oversee payroll issues. Contact a private attorney. You will pay for this. If you combine with other employees, you can split the costs. But nothing can be done until a payroll is missed.

Answer 3

Where I am in Arkansas, you either open a bank account for direct deposit, or lose your job. Temporary agencies allow a debit card to be issued.

Answer 4

Yes

Answer 5

Yes they are able to do that under Michigan statutes.