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 Post subject: Mandating Direct Deposit
PostPosted: Mon Nov 16, 2009 6:22 pm 

Joined: Sun Nov 08, 2009 6:25 pm
Posts: 1
Location: Lansing, MI
I work for a public school district in the State of Michigan and I am researching whether or not the district can mandate direct deposit of wages for all employees (either by depositing wages directly in to the bank account(s) of the employee or by issuing pay cards). Where would I be able to find information to help me with this research. A couple of the questions that I would like answered are:

1. As a public employer, can the district mandate direct deposit ?

2. Would current employees have to be "grandfathered" - i.e., not required to participate in the direct deposit requirement?

Thank you for any help that you can give me on this matter.

-Nancy R


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 Post subject: Re: Mandating Direct Deposit
PostPosted: Wed Nov 18, 2009 11:52 am 
Board Guru

Joined: Wed May 28, 2003 10:23 am
Posts: 1377
Location: Portland, OR
Found this here:
http://www.michigan.gov/dleg/0,1607,7-1 ... --,00.html

Quote:
Requires that an employee receive wages in cash, check or money order. Employees may authorize the direct deposit of their wages into a bank or credit union.


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 Post subject: Re: Mandating Direct Deposit
PostPosted: Thu Nov 19, 2009 6:40 am 
Regular Contributor

Joined: Wed Mar 09, 2005 11:39 am
Posts: 165
Location: PA
Only a few states (NC being one of them) allow an employer to mandate direct deposit as a condition of employment.

You could put out something like "It is expected that all employees will enroll in direct deposit" but you can't absolutely require it.


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 Post subject: Re: Mandating Direct Deposit
PostPosted: Thu Nov 19, 2009 8:14 am 
Board Guru

Joined: Mon Aug 04, 2003 7:13 am
Posts: 4007
Location: Oakland, CA
Not my area of expertise (especially in MI), but it is very common for governmental employees to not be subject to the same rules that private sector employees are. While I am in agreement that MI prohibits mandatory direct deposit for private sector employees, I am going to suggest that it is possible that this is maybe not true for public sector employees.


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 Post subject: Re: Mandating Direct Deposit
PostPosted: Fri Nov 27, 2009 6:53 am 

Joined: Mon Nov 23, 2009 9:26 pm
Posts: 1
Location: Mason, MI
Although most states doesn't mandate direct deposit, I think that most states should look into it. It saves the company time and money. It also makes the payroll process more efficient.


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