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  1. #1
    Join Date
    Dec 2007
    Posts
    16

    Default Mandatory Direct Deposit

    My employer has a new rule about mandatory direct deposit. Anyone who do not sign up for direct deposit will be terminated. It does not sound legal to me, as the employees do not have a choice on the matter. Is this legal in the state of California?

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Mandatory Direct Deposit

    According to my cheat sheet, no, it is not. But I don't have any cites backing it up. Betty?

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Mandatory Direct Deposit

    California - Employers may pay by direct deposit but only if employees voluntarily authorize such deposits.

    My source makes reference to statute (labor code) Ca. 212 & 213

  4. #4
    Join Date
    Jan 2008
    Posts
    1,948

    Thumbs up Re: Mandatory Direct Deposit

    Betty3 is correct. I personally went to the labor commissioner's office to check on this one. I had an employee who would move, and then not get his paper check - THREE TIMES in three months. I was not even allowed to charge him the stop payment fees on the checks - even though it was his fault for not giving us enough notice of the address change before checks were issued.

    If you refuse to get direct deposit they always have the option of paying you in cash instead of a paper check.

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