is it legal for my employer to withhold my wages on the grounds that i have no bank account ???

Question

i have recently closed a bank account to whome my wages were getting paid in and i have had a bit of bothe opening anotherone the first week my employer give me a cheque and its been two weeks now and my employer has said that they carnt pay me until my bank account is open i get paid wkly is this legal???????????

Answer 1

I don't see how they can do this. I don't have a checking account, so I could never have direct deposit. I don't think they can require you to have direct deposit.

Answer 2

It is and it is'nt

Basically....when you started work for the employer you would have been told and accepted that wages are paid into the bank on a certain day....So your employer is not required to change his rules to accomodate one employee /....particularly when the normal method had already been in place and was not a problem caused by him

However.....in law an employer is not allowed to with hold wages for any reason whatsoever

I think you should explain to him that you have not been able to open an account and will he pay to with a cheue with prior agreement at his bank for you to cash it

Answer 3

The government has steered things such that companies are forced to pay through the banking system in the name of 'money laundering', although in reality it has more to do with control.

A friends father has a small business and used to pay his workers in cash via a weekly wage packet until one day the bank refused to cash his payroll cheque and insisted that the worker's open bank accounts and be paid through the bank system. As some had never had a bank account they then had to open one etc. He did tell the bank that it was his money that he wanted and the workers did not want to open bank accounts but still the bank refused - all in the name of money laundering.

Answer 4

Many employers prefer to pay their employees by direct deposit to their bank accounts. This saves a lot of money not having to print checks and envelopes, etc. Your employer might require you to have a checking account to deposit your wages to via direct deposit as a condition of employment. $10 will open a checking account, give the account number to your employer, and get paid!!! You can argue with your employer later whether they can withhold your wages...... you probably need the money NOW!!

Answer 5

It is illegal to withold your pay because you don't have a bank account. However, depending on where you live in the world (country/state) a company may well be entitled to make it a condition of employment that you have a bank account if they are geared up for electronic payment of wages and salaries only.

Answer 6

Simply put. No.

Call the Department of Labor if he doesnt pay you in three days. There may be a legitimate holdup because of the automatic payment to your account being returned, but he has to write you a check ASAP. No way he can justify not paying you until you get a bank account.

Answer 7

It is getting so it is no longer "preferred" but mandatory to have direct deposit. It is probably company policy and nothing you can do about it except quit. Where i live, only temporary employers pay by check or debit card. All the employers here require direct deposit.

Answer 8

no if you had direct deposit before that might be a problem though you dont need a bank account to cash a physical check

Answer 9

Probably not.

They can give you a check and you can cash it at their bank if you have proper identification.

So, what's their real issue?

Answer 10

It's a crime. Please report them to your state's Labor Board.