Mandatory Direct Deposit in PA?

[Zigner]

My opinion of the matter is that employees do not need to authorize direct deposit. They are free to demand that they be payed in lawful money or check. Employees are free to look for a new job.

Yes, exactly.

If employees do not authorize deductions, employers are bound to pay wages with lawful money or check, and employees (or former employee) can demand that their last pay be sent by certified mail.

DD is not a "deduction" - what does that have to do with anything?

 

[tranquility]

While I think the OP is wrong, he is not without a reasonable argument. If you do a quick search, THE case which allows "mandatory" direct deposit (in PA) has to do with a collective bargaining agreement. True, most articles on the matter agree the case allows for mandatory deposit in all circumstances. However, prudent articles say there is not a case on this point precisely.

That is why the OP has a problem. It is not going to be worth it to him to litigate this matter. He would need to hire an attorney to change how the law is generally understood by distinguishing his situation from case law.

 

[george of]

DD is not a "deduction" - what does that have to do with anything?

PA wage law. Wages have a specified way to be paid after deductions - legal money or check. State regulations regulate what deductions are allowed.

 

[cbg]

That does not explain how DD is impacted. DD is not a deduction.

 

[davidmcbeth3]

Are you an idiot? They know your account number when you deposit the check into your account. Unless you pay some outrageous fee at a check cashing place in which case you're even more of an idiot.

Maybe Picard does not have a bank account but cashes the check at the issuing bank?? Could be no fees there.

 

[george of]

That does not explain how DD is impacted. DD is not a deduction.

Please explain, with a relevant legal explanation within PA law. To simplify what I have found to be valid for PA:

Work -> earn wages -> deductions removed from wages -> remainder must be paid in lawful money or check

DD is a deduction.

For an example carried out, I have direct deposit. I also receive a voided check (which shouldn't be required but they do it anyway) for zero dollars with my pay stub.

 

[george of]

While I think the OP is wrong, he is not without a reasonable argument. If you do a quick search, THE case which allows "mandatory" direct deposit (in PA) has to do with a collective bargaining agreement. True, most articles on the matter agree the case allows for mandatory deposit in all circumstances. However, prudent articles say there is not a case on this point precisely.

That is why the OP has a problem. It is not going to be worth it to him to litigate this matter. He would need to hire an attorney to change how the law is generally understood by distinguishing his situation from case law.

While I think the OP is wrong, he is not without a reasonable argument. If you do a quick search, THE case which allows "mandatory" direct deposit (in PA) has to do with a collective bargaining agreement. True, most articles on the matter agree the case allows for mandatory deposit in all circumstances. However, prudent articles say there is not a case on this point precisely.

That is why the OP has a problem. It is not going to be worth it to him to litigate this matter. He would need to hire an attorney to change how the law is generally understood by distinguishing his situation from case law.

I'm not arguing that mandatory direct deposit is illegal, but am questioning its legality. It appears to still be a grey area until the DOL publishes a determination. From what I have seen, I could present arguments either way.

My personal preference would be that direct deposit be allowed to be offered as a benefit, but that authorization by an employee not be allowed to be mandated as a condition of employment because of the potential repercussions to a minority of workers. In my opinion, wages should be available in a form that is convertible to legal tender as the law dictates, and that getting wages that way should not require an employee to terminate their employment. It's one of those free market vs. regulation kind of things. Usually, I'm for less restrictions, but companies in the past have amply demonstrated abuses in this area.

As for suing to set a precedent, I'll leave that to someone else. Personally, I'm content with keeping my job and receiving my direct deposit in my bank account and having it available a few days earlier than if I was payed by check. I just question the legality of mandating it considering the debate on the topic and the differences in what is allowed state by state.

 

[davew128]

Maybe Picard does not have a bank account but cashes the check at the issuing bank?? Could be no fees there.

I would think Picard would avoid any Ferengi banking institution.

 

[Zigner]

Please explain, with a relevant legal explanation within PA law. To simplify what I have found to be valid for PA:

Work -> earn wages -> deductions removed from wages -> remainder must be paid in lawful money or check

DD is a deduction.

For an example carried out, I have direct deposit. I also receive a voided check (which shouldn't be required but they do it anyway) for zero dollars with my pay stub.

See, your "logic" breaks down when you take the leap and state that DD is a deduction. It is not.

 

[cbg]

The money was placed in your account.

You, or at least your bank account, received the money. There was no "deduction".

A third party with a legally authorized lien against you and/or your property received a part or all of the funds due to him out of that deposit.

However, if the funds rested in your bank account for one SECOND, you were paid by the employer. What happens to the money after that has nothing do do with your employer, your payroll, or what method of deposit was used.

 

[eerelations]

OP, for the last time:

Mandatory DD is legal in PA.

There is no point questioning its legality - it is legal, that's a fact, and the only thing you can do to change that fact is to ask your state representative if he/she can get a law passed that prohibits mandatory DD. If your rep agrees, fine. If your rep refuses, too bad.

And that's it folks. Responding to this guy is a complete and utter waste of time, he's one of those dopes who won't listen to anything anyone says no matter how accurate and true it is, he just gonna keep on posting away, wasting everyone's time, until he hears what he wants to hear (even though it's wrong).

I for one am no longer participating in this spam.

 

[george of]

Thank you for more replies, though some of them are beginning to show some lack of civility (such as the personal attacks and name calling) that should be the standard decorum of this type of board.

As for the posters adamant that direct deposit is not a deduction, please give your PA legal reasoning. By PA wage law direct deposit must be a deduction.

Are you claiming that direct deposit is legally the same as a check as defined by Pennsylvania law? Deductions such as payments to savings accounts are called deductions by the DOL.



To cite the portion of the wage law relevant to direct deposit being a deduction:

The wages shall be paid in lawful money of the United States or check, except that deductions provided by law, or as authorized by regulation of the Department of Labor and Industry for the convenience of the employe, may be made including deductions of contributions to employe benefit plans which are subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq.

Please, be civil. I would be gone, but it seems that the claims of direct deposit not be a deduction is contrary to what is legally accurate. I came here hoping for some additional insight into what is legal and the legal basis for practices taking place in the state of Pennsylvania. I have learned quite a bit elsewhere, especially after finding that the laws were not changed as I initially thought. I was wrong in my assumptions as assumptions often are, especially in an area that I do not have much knowledge or experience, which is why I came here to post. If seeking to learn what is right and change my view when presented with additional verifiable facts is frowned upon here, I apologize. There has been little additional facts presented here by others.

 

[Zigner]

I concur with eerelations

 

[cbg]

Yes. I am claiming that direct deposit is legally the same as a check or lawful money.

I've already explained my reasoning. I am not going to do it again. If you don't understand the difference between direct deposit and a pay deduction, I'm not going to waste any more of my time on it. I don't owe you any answers. I have no obligation to beat my head against the wall because you don't understand payroll.

 

[george of]

Yes. I am claiming that direct deposit is legally the same as a check or lawful money.

I've already explained my reasoning. I am not going to do it again. If you don't understand the difference between direct deposit and a pay deduction, I'm not going to waste any more of my time on it. I don't owe you any answers. I have no obligation to beat my head against the wall because you don't understand payroll.

You may understand the principles of payroll, but do you understand PA law?

Under PA law as stated previously there are 3 ways of paying wages:
1. Lawful money = which would be cash
2. Check = which would be a draft payable on demand
3. Deductions = methods determined in DOL regulations

Please actually cite the source that DD fits the definition of a check in Pennsylvania wage law. Please also consider that by law the payment of final wages is something that an employee can demand to be sent by certified mail.

Added: please let help me learn what is legally accurate