States mandating direct deposit

(D) The appointing authority of a person in a covered position who has failed to authorize the direct deposit of the person's compensation into a financial institution of the person's choice as set forth in paragraph (B) of this rule shall cause the person's compensation to be directly deposited into a financial institution designated by the director of budget and management for the benefit of the person.

Governor Granholm recently signed a bill permitting the state, in its capacity as an employer, to direct deposit the pay of so-called "nonclassified" employees without the employees' signed permission.

(In general, nonclassified employees are nonunion employees.) You might hear reports or read articles suggesting that private employers also have this same right. The new law does not change the requirement that private employers must obtain the permission of an employee before directly depositing his/her paycheck.

For more information, please contact Rob Dubault at [email protected] by phone at 231.727.2638.

READ: CLICK HERE FOR A NEW VERSION OF THIS ARTICLE Electronic services like direct deposit, online pay statements and online access to payroll reports are becoming more popular.

Employers who were paying by debit card on or before January 1, 2005, are grandfathered and do not need employee consent.

This issue was being pushed by the House and Senate, apparently as an effort to save employers money and to reflect the realities of common payroll practices.Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least 3 years. Florida does not have any laws requiring employers to provide employees, whether at hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.Apparently, what is good for the goose is not good for the gander.(H) This rule does not prohibit nor does it restrict an appointing authority from offering to a person appointed to a non-covered position within the appointing authority the opportunity to have that person's compensation directly deposited into a financial institution of the person's choice. 119.032 review dates: 09/16/2013 and 09/15/2018Promulgated Under: 119.03 Statutory Authority: 124.09, 124.151 Rule Amplifies: 124.151 Prior Effective Dates: 11/27/05, 7/1/06, 12/1/06, 1/18/09, 5/20/12Prior History: (Effective: 05/20/2012R. Participation by all persons appointed by an appointing authority in the direct deposit of the person's compensation into a financial institution of the person's choice is to be encouraged where practicable. Thus, if you do business in states other than Michigan, you might be able to require direct deposit of paychecks.

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