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