I know the Navy made it mandatory. It's supposed to reduce accounting costs. I think.

They certainly can do this. However most (but not all) have an option where if you fill out a form they will make an exception. I don't understand Why this would pose a problem for you worknboy? It is a tremendous advantage in most cases.

:)

Hi Beetle Bee. You sound authoritative about this. I have a question: at the end of 2009 the US Federal Gov't will enact 42 USC 666 (17) - Real ID Act. In this section of the code it forbids financial institutions from doing business with anyone who does not carry one of these Real ID's. Some states are not ready to comply with this Fed code. What will happen to people's money in those states that don't comply? Will their bank accounts be frozen?

Then they are mandating you do business with a financial institution. are they recommending any specific bank? If they are research the relationship between your employers and the bank they recommend. One may be a past employee.

If it were me, I would question their authority to do this. they are already jacking you around paying you with a check that is questionable in the first place. Even if they paid you in cash they are still only paying you with a promissary note, (a promise to pay), and the cash is worth-less as each week goes by and the dollar is further devalued.

I will bet mandatory direct deposit is not legal, they can say it and you can comply, but if no one challenges it they will prevail over you.

Hi, Dan- under labor law, all employees ARE supposed to be paid in cash. However, the escape clause for paying by check is that the employee MUST be able to cash the check(Without charge) in a nearby place, and be given sufficient time (paid) to do that. Direct deposit is the equivalent to being paid in cash, as those funds are available upon deposit into your account.
The real problem you speak of is "mandatory" requirements, an idea that I, too, have serious problems with.

Hi russ, How's everything this nice friday morning?

Look, I do direct deposit where I work but I do it because it goes to the same bank that holds my mortgage. We are not mandated to do this though.

Last week they paid us and the non-direct deposit employees had no problem cashing their check. Direct deposit people ended up having problems because of the person doing the data entry. Had to wait a few more days, or they said I could drive the 200 mile round-trip to the main company admin ofcs and have a hard check cut. That would have cost me at least $40 to get paid so I decided to just wait till it got corrected.

And you should be compensated for that effort, Dan !

It seems to me that the only "problem" would be if you do not have a bank account, a problem easily solved, unless you are speaking of "mandatory" as a problem If so, I agree with you.

Their only "mandate" is that you are paid. Abraham Lincoln outlawed the other option. The issue is when the funds are available. They should be in your account and available the same date as your usual pay day. In most cases they are deposited at midnight that day and with a debit card they are available to you at 12:01am which is very handy. This occurs regardless of holidays and avoids the waiting for the check to clear before the funds are available to you. For the employer they have cut their paperwork and save a bit of money.