employers making it MANDATORY to have direct deposit?????

Question

I recently started working at ingles, and after working for about a week they told me it is mandatory to have direct deposit. i informed them that I don't have a bank account. They told me it doesn't matter- I have to get one. The problem with that is when I was married my husband ruined my Suntrust account and I haven't been able to pay it off... (we are getting a divorce this month and he will be accepting some of the balance)
My question is- how can they make it mandatory to have a bank account to have a job??? and any suggestions on what I should do? I am trying to get a bank of america cashpay card and hopefully they can use that... if not looks like they have to find a new employee- what a bunch of crap...

Answer 1

Hi - unfortunately many employers are now requiring this as a means to saving $$. It costs money to print and process checks; direct deposit is much less costly.

They really should have told you about this condition of employment pre-hire. I agree with the poster who suggested that you speak with your manager or HR person about your situation - they may be willing to make an exception in your case.

Ask if the company uses a local credit union; you may be able to get a deal on opening an account with them. Another option is to open an account at the same bank the company draws on for its payroll (it's usually at the top of your check stub, or your HR or Accounting dept can tell you what it is.)

You are doing what you can to get yourself out of a bad situation, financially and otherwise. It will take some perseverance to get through this. Give yourself an A for effort and try not to let these little setbacks get you down, ok?

Answer 2

Mandatory Direct Deposit by Employers The Federal law prohibits an employer from mandating direct deposit to a “particular financial institution”. As long as the employee may choose his or her own bank, federal law is satisfied. However, state laws on the subject of direct deposit vary widely. Some states allow mandatory direct deposit and others require an employee’s voluntary consent. Individual state laws and/or the state department of labor should be consulted before implementing a mandatory direct deposit program

Answer 3

A savings account is fine - as long as the bank prints out proof of the savings account number. Just be aware that all withdrawals from a savings account may be charged a fee. The purpose of a savings account is to save.

I once worked for a company that paid out by check every two weeks. I asked them why they DIDNT do direct deposit. They said they chose not to. I told them they need to start doing it, because its the norm in business nowadays, and employees just dont have time or patience to take their checks to the bank. I lasted there about 12 months, but I hated the checks.

I made sure my next job did do direct deposit. Because then I can pay my bills online from my bank account on payday in the morning, before I go to work. Much quicker and easier that way. Direct deposit is so much easier and more convenient. .

Answer 4

I know of a school district that does this. They require all employees to have direct deposit. The school charges $15 to print you a paycheck. They do this to reduce costs. Instead of running one check run for paychecks and another check run for direct deposits, they just have to run one for direct deposits. Also, the print stock for the direct deposit advice is much cheaper than the print stock for a paycheck. Also, it reduces the amount of lost checks and the hassles that come with those.

It sounds like you have a problem to resolve with a bank one way or another. A messed up bank account can follow you around and cause problems. It can keep you from getting a better job if it appears on your credit. You should focus some energy on getting that problem fixed rather than trying to hide from it. Living life without the ability to have a checking or savings account is not a good idea.


Also, you do not have the right to demand to be paid in cash. There is no law on the books that says an employer has to pay the employee in cash if the employee demands it. If anyone tells you that is true, demand to see something that backs that up. Perhaps a link to the state ran website that lists this particular law.

Answer 5

Yeah, this happened too me about 12 years ago, I was furious also, but was told there was no choice in the matter if I was recently hired (newhire), the senior employees got too keep thier normal paychecks going and was able to opt out,
here's why they do it, its not to punish the employee first, It saves the corporation money on the book keeping side of things, I actually like it now, and it does offer some incentive too want to save money in the bank rather then putting all your cash in your hand and spending it all....Any bank should be able too set up a direct deposit account easily, they are common reguardless of credit ratings, you should be able to get a cash card from your bank to withdraw funds from your savings as needed, if not, try a new bank.
Most corporations are squeazing thier operations and trust me, this is just the start, wait until your human resources phone calls are too foriegn countries to answer common questions on payroll etc, companies are disconnecting themselves from employees.
I promise, you'll get used too direct deposit, it only a temporary inconvienience if you live from paycheck to paycheck...Good Luck!

Answer 6

I worked for a company that did the same thing. It is not against the law for them to pay you through direct deposit. The company that I worked for was really large, and used to mail the checks to their employees. After having complaints that checks were lost in the mail, or wrong addresses and whatnot, it was easier, and cheaper for the company to do away with paper checks all together, and do it all through direct deposit. Many employees had the same situation as you, as well as many employees that would rather cash their paycheck and deal with cash altogether. Banks want your money, regardless of credit score. If they know that they are getting the money deposited directly, then that makes them even more happy. Many banks offer free checking, such as Wells Fargo. You shouldn't have a problem getting a bank account.

Answer 7

Not sure if they can make it mandatory, check into your employee handbook, and try to contact some at the main office to get details.

Try Commerce as your bank, they give anyone an account. Also, a lot of new banks are out there looking for business so it's extra easy to open an account these days (TD Banknorth is one).

Your job wants to save money on paper checks, so ask if they will get you a debit card whre only your pay chek is direct

Answer 8

I never heard of a company doing that, before! That's strange. I would ask the Labor Commissioner in your state (just call up and ask!) if this is legal. Still, it IS a new job, and I would suggest that you have a relative who DOES have a bank account sign up with you on the account, so that you can get your pay with direct deposit. How much do you want the job? If you want the job, find someone to put onto the account that you trust.

Answer 9

Try a small local bank. They don't usually do a check of other banks to see if you are clear to open an account.

-HR Girl

Answer 10

It's all about them saving money. You know now that the people that you work for cares nothing about their employees just the dollar. I will work for less money if I feel that the company gives a crap about their people. Look for that company. There's a few left. Good luck