Can my job force me to get direct deposit instead of recieving a check?

Question

My employer is saying that I can not get a check even tho I have for the past 9 months. They say I either need to get direct deposit or they will pay me on a "pay card" That costs me money anytime I use it. This seems unlawful to me to tell me how I have to get paid. I just want a check like I have been getting. I am located in Indiana if that makes a difference. Please, any information would be helpful. Thank you!

Well I do not feel like the employer should be able to tell me how I am to be paid. I do not keep a bank account as I had my information stolen once and this put me into a deep hole. Maybe I am paranoid but I dont trust bank accounts anymore. Now this is forcing me. The "pay card" is charged $3.00 per month plus $1.50 anytime to use it and $3.00 ATM fee. Why should I have to pay to get paid? heh BTW all of your answers have been very informative. Thank you

Answer 1

If you have a bank account, why would you have a problem with direct deposit? If you don't have a bank account, you are already paying someone more to cash the check than the 'pay card' would charge.

Answer 2

I am in HR so I have a little experience in this. Different states can allow employer's to require direct deposit. In Indiana, employers are free to require direct deposit. (Note, however, that an employer may not withhold pay merely because an employee has not yet set up a direct deposit account.) Other states (Illinois, for example) prohibit this practice.
Direct deposit is wonderful. My current company doesn't offer it and I miss not having to drive to the bank just to deposit it. You can have it deposited into a savings or a checking account. I would encourage give it a try.

Answer 3

Direct deposit is the way to go. The money is there sooner than if you actually received a check because you need to deposit a check which may not clear for a couple of days. Direct deposit funds are good funds. If you must have a check, you should look into another employer.

Answer 4

Hate to say it but they can and its all because the use of direct deposit saves them money, in some cases a lot of money. I was in your position I wanted to see my check instead of going to the bank, to make my situation worse they dont send me pay stubs anymore. Everything I need to find as far as my pay is on the computer. Unfortunately it is not unlawful, but direct deposit is good I have grown to like it especially when they put the money in the day before pay day.

Answer 5

I know of school districts that have gone to all direct-deposit payrolls. The people there who insist on getting a paycheck have to pay a fee to have the check printed. This is done to reduce some of the payroll costs. One, printing direct deposit advices is easier. Two, it removes the reprinting of lost checks. Three, it keeps employees from bugging payroll to get their check a day or two early.

This is legal. You might as well get a bank account and get the direct deposit.

Answer 6

No, not legally. Of course, an employer (at the time of employment) can specify how the employee will be payed. The employee can negotiate this point, or agree to it, or not take the job. If the employer says at the time of employment "We will pay you through direct deposit," you can either say "Yes, that's fine" or "No, I'm not going to take the job." They can't force you to do anything of the sort.

Answer 7

My company forced me to get direct deposit. They used to distribute by hand and then one day decided to stop that. They said alternatively they could mail it but it could get lost. I decided to call their bluff, they mailed it, or they say they did, and it DID get lost. I had to sign up for direct deposit to prevent it going forward. I think they want to save money on the postage!!

Answer 8

Give direct deposit a try. Its great.