Direct Deposit Reversal Without Prior Approval

[sharmasp5]

State : OHIO
My company has reversed my direct deposit for $1500 for the pay period 09/01 to 09/15 without my approval.
During that period i had worked for my previous employer.The transaction date of crediting salary is 09/25 and the reversal of the direct deposit is on 10/05 as per bank records.
I have filed a litigation in Bank and communicating with my previous emplyer to know the cause for reversal.
Can any one tell me
1. The criterion in which the employer can reverse the deposit.
2. Whether he can take money after 10 days of deposit.
3. Where should i file a complaint to get my money back.
4. Whether i am eligible for the money as i have worked during that pay period.

Thanks in advance for the invaluable suggestions

sharma sp

 

[Zigner]

When you agreed to use direct deposit, you also agreed that the employer can make corrections of errors.
Continue your litigation if you feel you are owed the money. And, contact your state's department of labor.

 

[scorp11764]

I believe that an emplyer can not reverse a transaction after 5 business days. Definitely call your state DOL.

 

[ecmst12]

How long the employer can reverse a deposit will depend on the bank; the bank allowed them to do it so what you need to do now is find out WHY the transaction was reversed and if a new deposit will be made. Was the amount wrong?

 

[cbg]

Actually, I believe that banking law places the limit at 5 days; it is not bank or state specific.

Patty?

 

[sharmasp5]

Thanks for the quick response..

Further update,
I was an employee of the company in India and deputed to work here in USA and i have changed to another company here in USA.I called my HR to know why the direct deposit was reversed and got the answer that i have settlement due which should happen out of India.
But i googled and came to know that the employer can only reverse direct deposit only in case for wrong deposit amount or dual credit of salary,in my case it is not either of both.
The credited amount was my salary for the period worked i have worked.
Please advice..
1. Whether company can reverse the direct deposit stating the amount due from me.
2. Whether i should fight this with the help of legal adviser.

 

[TinkerBelleLuvr]

Have you called the bank to ask them about it?

 

[sharmasp5]

Yes i have asked the bank for the reason of allowing reversal of direct deposit and
Bank has taken my requset for enquiry and will mail me the details in 5 working days.

 

[mlane58]

You need to file a wage claim with your state DOL

 

[pattytx]

Seems to me I've seen this post before.

 

[TinkerBelleLuvr]

I talked with the cash management system of the bank we use for work today. ACH is Federal, so this one goes across all the states.

No, there is NO time limit on retrieving the money. They verified that one for me. It is legal since you signed the direct deposit form that states that you authorize them to take the money out.

Personally, I think the way they did it stinks. I know that I wouldn't do that to any of the employees who work for us who currently have direct deposit. If I find an error, I would IMMEDIATELY contact the employee and see what we can do.

 

[fairisfair]

I talked with the cash management system of the bank we use for work today. ACH is Federal, so this one goes across all the states.

No, there is NO time limit on retrieving the money. They verified that one for me. It is legal since you signed the direct deposit form that states that you authorize them to take the money out.
Personally, I think the way they did it stinks. I know that I wouldn't do that to any of the employees who work for us who currently have direct deposit. If I find an error, I would IMMEDIATELY contact the employee and see what we can do.

how could any one possibly know what the direct deposit form that he signed says??????

 

[TinkerBelleLuvr]

In order to signup for having your check direct deposited, there is this verbage that is on the forms from the bank that allows you to withdraw that deposit you made. He will find the verbage if he asks for a copy of the form he signed.

 

[pattytx]

In order to signup for having your check direct deposited, there is this verbage that is on the forms from the bank that allows you to withdraw that deposit you made. He will find the verbage if he asks for a copy of the form he signed.

That may be true, but the majority of employers have their own form and although a well-drafted form should have such a statement, not all do. Besides, the employee is not authorizing the BANK to initiate direct deposit, he's asking the employer.

 

[sharmasp5]

Further Update,
This is getting complex,Even while i am fighting fo reversal of Direct Deposit,
my previous employer has made one more deposit of the salary for the period 09/15 to 09/30 for which i have never worked with him.Also my new employer has also credited to my account.
So i have two employers crediting to my account,I am on H1B Visa in USA which tells that I should be working for only one employer.
Eventhough i am working for one employer,two are creditng salary to my account.

Please advice me on

1. I have written email to HR in my previous company to stop my payroll,if they continue
to credit salary will it cause me problem filing tax returns (Also note that i am on H1 visa
and can work only for one employee) and also tell me whether email to stop payroll will hold
good to claim that i have asked the company to stop payroll.

2.How to file tax in this case (Two employers have credited my account,i worked only for one)

3.How to return money back to my previous employer (OR should i not because he has reversed my direct deposit,PL see
original issue)

All advices are welcome and thanks for your time

Regards
sharmasp5