1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

forced direct deposit of wages

Discussion in 'Employment, Labor, Work Issues' started by supg59, Feb 26, 2008.

Thread Status:
Not open for further replies.
  1. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    Hello everyone, new to the site, hope somone can answer my questions. My employer (federally and county tax funded) informed us several weeks ago that they would no longer issue pay checks, and everyone had to file a request for direct deposit of wages or they would recieve a pay TM card which is a debit card issued by their bank. Of course the debit cards have many different types of fees. My question is, can an employer legally
    force people to get a checking account? I am pretty sure they can't force a debit card on us. Anyway, I haven't been paid in three weeks now because I refuse to activate the debit card they sent me and I do not want to get a checking account. I told them I was going to file a wage claim with the texas workforce commission for unpaid wages and they replied that my wages were paid and I can access them any time I chose to, by activating the debit card they sent me. Any insight on this issue would be greatly appreciated, rent is due first of the month (smile). Thanks, Dave
     
  2. seniorjudge

    seniorjudge Super Moderator

    Messages:
    4,309
    Likes Received:
    78
    Trophy Points:
    0

    Q: My question is, can an employer legally force people to get a checking account?

    A: No; there are alternatives. For example: "they would recieve a pay TM card which is a debit card issued by their bank. Of course the debit cards have many different types of fees".
     
  3. cbg

    cbg Super Moderator

    Messages:
    7,881
    Likes Received:
    1,098
    Trophy Points:
    113

    FYI, whether or not an employer can require direct deposit is state specific. In Texas, according to my source, it IS legal for an employer to make direct deposit mandatory.
     
  4. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    true, but.....

    according to the texas payday law, and employer has a right to impose direct deposit on it's employees, if said employees have a bank that allows such, it is not specific enough language, as such, it does not state the employer can require an employee to obtain an account for said purpose. Based on this, I am thinking the federal law prevails. Although I could not find anything in the act specific to the question I did find that the field interperatation handbook (sec 30c00) specifically states they can not force direct deposit, however, i am unsure what issue was at hand in relation to the interpertation. Any insight would be appreciated, I will try to paste the exact language in another post, thanks, dave
     
  5. seniorjudge

    seniorjudge Super Moderator

    Messages:
    4,309
    Likes Received:
    78
    Trophy Points:
    0

    Dave, you are not being forced to have a checking account.

    But, as cbg correctly pointed out, Texas law allows you to receive your paycheck through direct deposit. The reasons for this are many, including fewer errors and fewer lost checks.
     
  6. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    then why haven't i got paid in 3 wks?

    yes, they are trying to force me to get a bank account and accept direct deposit, that's what they haven't paid me in the past 3 weeks..!

    Good news though, I just got confirmation that my employer, The Metropolitan Transit Authority is a public employer and therefore exempt from the Texas Payday Law. I appear to fall under the FLSA of 1938. It states my employer must pay me by cash or check I believe.

    Should I use the following DOL,W/H div. interpertation as the base of my arguement?

    ie [Field Operations Handbook
    Section 30c Payment of Wages
    30c00 Method of Payment

    The payment of wages through direct deposit into an employee's bank account is an acceptable method of payment, provided employees have the option of receiving payment by cash or check directly from the employer. As an alternative, the employer may make arrangements for employees to cash a check drawn against the employer's payroll deposit account, if it is at a place convenient to their employment and without charge to them. (Field Operations Handbook, 12/9/88)]


    Basically, I want the right to refuse the debit card and direct deposit without disciplianary action or retrobution. I know I can get my wages through a wage claim through the DOL. Am I on solid ground, considering this new information., Thanks, Dave
     
  7. seniorjudge

    seniorjudge Super Moderator

    Messages:
    4,309
    Likes Received:
    78
    Trophy Points:
    0

    That information you quoted is from the last century.

    Do you have anything newer?
     
  8. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    DOL field operations handbook

    I realize the page I quoted is date 1988 but the handbook I got it from is dated 2000. You can look at it here.............. http://www.dol.gov/esa/whd/FOH/FOH_Ch30.pdf

    scroll down to 30c00, although that page is dated 1988 I am sure it is still applicable as they included it in the 2000 revised handbook.

    So, my question still remains the same, can my employer force me to accept direct deposit under threat of disciplinary action?, thanks for you previous and future replies, sincerely, Dave
     
  9. Innerlaner

    Innerlaner New Member

    Messages:
    51
    Likes Received:
    0
    Trophy Points:
    0
    Isn't a debit card the same as cash? Withdraw cash from the ATM and pay your rent. Issuing checks is expensive.
     
  10. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    First of all, the debit card they offered me is issued on their bank which has no branches in my small town. To use the card would require me to pay several different fees to the company's bank not to mention any local bank fees. Also, if I wanted an activity report it is and additional 15.00 per month. You can never withdrawl the full amount on the card because atm's only give certain increments of cash. The whole thing is a scam, not to mention, illegal. It is a non issue to me, I am interested in imput on the legallity of forced direct deposit. Thanks, Dave

    BTW, they still issue us a fake check with statement of earings and deductions, so cost is not their concern
     
    Last edited: Feb 29, 2008
  11. cbg

    cbg Super Moderator

    Messages:
    7,881
    Likes Received:
    1,098
    Trophy Points:
    113

    As I already told you, in Texas it is legal for an employer to require direct deposit.
     
  12. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    No offense cbg, but I work for a politic subdivision, ie public employee, therefore my employer and I are exempt from the texas payday law. Additionally, federal law superceeds state law. Thanks, Dave
     
  13. cbg

    cbg Super Moderator

    Messages:
    7,881
    Likes Received:
    1,098
    Trophy Points:
    113

    Since you clearly believe that you know all the answers, I don't know why you're wasting your time asking questions of an internet board.
     
  14. seniorjudge

    seniorjudge Super Moderator

    Messages:
    4,309
    Likes Received:
    78
    Trophy Points:
    0

    No offense, Dave, but you don't know what you are talking about.
     
  15. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    I am only relaying the research I have done and I do not have all the answers, that is why I am asking questions here, but i would like a little more than "you don't know what you're talking about" or "they have a right". I am not trying to be rude or argue with anyone. If I come off that way i apologize to anyone who I offended. This is a law board and I was hoping for something a little more meaty, maybe some sort of citations, I am not totally ignorant of the law. General vs specific for instance. I should point out that the Texas workforce Commission who enforces the TPD Act, after realizing my employer was federally funded, told me my employer was exempt. Were they wrong too?

    Thanks, and again my apologies, Dave

    _______________________________________
    _______________________________________
    Of liberty I would say that, in the whole plenitude of its extent, it is unobstructed action according to our will. But rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add 'within the limits of the law,' because law is often but the tyrant's will, and always so when it violates the right of an individual.
    Thomas Jefferson
     
    Last edited: Mar 1, 2008
  16. Scooterdog

    Scooterdog New Member

    Messages:
    937
    Likes Received:
    0
    Trophy Points:
    0
    What if you don't use a bank? What if you're one of the ones that see's through the smoke and mirror's and knows bankers are EVIL! Your telling me Texas laws can make you do business with a bank? I'd love to challange that one.
     
  17. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    where's the Beef? Still waiting for a reply of some substance. You know who you are........... Dave
     
  18. cbg

    cbg Super Moderator

    Messages:
    7,881
    Likes Received:
    1,098
    Trophy Points:
    113

    You've made it clear that you don't care for my answers, so I'm not going to waste my time providing any more.
     
  19. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    Come on cbg, it's not that i don't want you or sjudge to reply, i just don't want some blanket reply like a human resource director, I would like some discussion on the facts of law. For example, you have and continue to state that I am subject to the texas payday act although I told you I was exempt because my employer is a politic subdivision. citation, T.P.Act [§ 61.003. GOVERNMENTAL ENTITIES EXCLUDED. This chapter does not apply to the United States, this state, or a political subdivision of this state.] The TWC rules chapter 821 states the same thing under "jurisdiction". I would also like to point out said act does not specifically state an employer can force an employee to accept direct deposit, it merely states that direct deposit is an acceptable form of "payment of wages" that an employee can agree to in writing. See payment of wages, 3b.
    In my mind, this is a mute issue anyway as i do not believe the texas payday act applies to me. I am certainly open to discussion on the issue with you if you disagree with my interpretation, please advise. Thanks, dave
     
  20. supg59

    supg59 Law Topic Starter New Member

    Messages:
    12
    Likes Received:
    0
    Trophy Points:
    0
    Well, I guess I will give up trying to get any straight answers on this board. I figured one thing out though, as I was wondering why some of the replies I received sounded like they came from management. Seems that one of the so call "legal experts" is a human resources person. huh! Guess there are no real lawyers here trying to help people out of the kindness of their hearts after all. Peace, and good luck to all, Dave
     

Share This Page

Thread Status:
Not open for further replies.