Informal, Non-Binding Legal Advice

[Bobl]

For our legal beagles:

Can an employer legally require employees to receive pay by either direct deposit or debit card only?

[Retroit]

PAYMENT OF WAGES AND FRINGE BENEFITS [[EXCERPT)
Act 390 of 1978

408.476 Wages; payment methods; deposit of employee's wages in bank, credit union, or savings and loan association; issuance of payroll debit card; consent; fees or costs. Sec. 6.
[[1) An employer or agent of an employer may pay wages to an employee by any of the following methods:
[[a) Payment in United States currency.
[[b) Payment by a negotiable check or draft payable on presentation at a financial institution or other established place of business without discount in United States currency.
[[c) Direct deposit or electronic transfer to the employee's account at a financial institution.
[[d) Issuance of a payroll debit card to the employee. As used in this section, "payroll debit card" means a stored-value debit card that provides an employee access to his or her wages, for withdrawal or transfer by the employee, through a network of automatic teller machines. The term includes cards commonly known as payroll debit cards, payroll cards, and paycards.
[[2) Except as provided in section 283a of the management and budget act, 1984 PA 431, MCL 18.1283a, an employer or agent of an employer shall not deposit an employee's wages in a bank, credit union, or savings and loan association without the full, free, and written consent of the employee, obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to permit the deposit.
[[3) An employer or agent of an employer shall not issue a payroll debit card to an employee under subsection [[1)[[d) without the full, free, and written consent of the employee, obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the payroll debit card. However, an employer paying wages by payroll debit card to 1 or more of its employees as of January 1, 2005 may pay wages to any of its employees by payroll debit card without obtaining the consent described in this subsection.
[[4) An employer shall not require an employee to pay any fees or costs incurred by the employer in connection with paying wages or establishing a process for paying wages under subsection [[1)[[c) or [[d).


History: 1978, Act 390, Imd. Eff. Aug. 1, 1978 ;-- Am. 2004, Act 534, Imd. Eff. Jan. 3, 2005
Compiler's Notes: For creation of bureau of worker's and unemployment compensation within department of consumer and industry services; transfer of powers and duties of bureau of worker's compensation and unemployment agency to bureau of worker's and unemployment compensation; transfer of powers and duties of director of bureau of worker's compensation and director of unemployment agency to director of bureau of worker's and unemployment compensation; and, transfer of powers and duties of wage and hour division of worker's compensation board of magistrates to bureau of worker's and unemployment compensation, see E.R.O. No. 2002-1, compiled at § 445.2004 of the Michigan Compiled Laws.

[Bobl]

Thanks.
But it is still clear as mud to this lay person.

Does this section:

"...[[2) Except as provided in section 283a of the management and budget act, 1984 PA 431, MCL 18.1283a, an employer or agent of an employer shall not deposit an employee's wages in a bank, credit union, or savings and loan association without the full, free, and written consent of the employee, obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to permit the deposit..."

prevent the employer from imposing the electronic transfer, rather than a check?

[Retroit]

That's how I read it. Here's the exception that was mentioned:

THE MANAGEMENT AND BUDGET ACT [[EXCERPT)
Act 431 of 1984

18.1283a Payroll and payments by electronic funds transfer; implementation.
Sec. 283a.
[[1) Except as otherwise provided in this subsection, beginning October 1, 2005, all nonclassified state government employees payroll and payments and all elected and appointed state officials payroll and payments shall be paid by electronic funds transfer. The department of community health and the family independence agency shall implement this section October 1, 2006.
[[2) Except as otherwise provided in this subsection, beginning October 1, 2005, all contracts that this state enters into for the purchase of goods or services shall provide that payment shall be made by electronic funds transfer. The department of community health and the family independence agency shall implement this section October 1, 2006.
[[3) The department is encouraged to implement this section before October 1, 2005.


History: Add. 2004, Act 533, Imd. Eff. Jan. 3, 2005

[Bobl]

R:
Thanks. Believe it or not, I was once enrolled in a Legal Assistant program. It was interesting enough, but I decided that I am more of a "hands on" type!
Many moons ago.....

[Retroit]

Wise move.

[Bobl]

Perhaps not.
Lost a good job two years ago. Bouncing around since unemployment compensation ran out. 1980 wages, various jobs.
Healthy, though!

Thanks for the help.

[Retroit]

In other words, you'd be happy to get paid even if it were via involuntary Direct Deposit.

[Bobl]

Actually, the people I am working for now are a bit careless and inaccurate with their payroll. How they stay in business is not easily understood.
I just feel better with a paper check. Call me a Luddite!

[Blueidone]

There was a similar thread on this subject. Even though they may require direct deposit, I believe their are required to give you a statement each week of the gross wages, listed deductions and net pay.

My husband's check is direct deposited, but every week he gets a "check" that shows the hours, times the rate, less the deductions...also the year to date number of the same stuff...and then the "check" says O.OO because the last deduction is the money that goes directly into the bank.

[MichMatters]

My husband's check is direct deposited, but every week he gets a "check" that shows the hours, times the rate, less the deductions...also the year to date number of the same stuff...and then the "check" says O.OO because the last deduction is the money that goes directly into the bank.

Yes, this is called a paycheck stub.

This is a very interesting topic, and I've learned quite a bit, myself. But, should this be in the "Discuss Detroit" part of the forum?

[Retroit]

Bobl, if your Direct Deposit paycheck is incorrect, it can still be corrected. Direct Deposit doesn't prevent you from receiving pay due to you. The advantage of Direct Deposit is that you get your money immediately. It also prevents you from having to pay for a bounced paycheck [[been there!).

Blueidone is correct about the itemized statement, so you'll know if anything is amiss. Many companies provide this via the internet.

[artds]

I'm not an attorney but I have some fairly recent experience with the very question you asked.

The law cited above permits an employer to pay an employee via direct deposit, but only with the employee's free and written consent.

In the event that an employer does pay an employee via direct deposit, the employer is required to provide the employee with a way to print the pay statement in a retainable form at the time the wages are paid. In most cases, the employee can do this from their assigned computer, but otherwise the employer must make a computer available for the employee to use for this purpose.

[Bobl]

Thanks, everyone!
I used direct deposit for years, with a previous employer, and liked it. The problem is that the people I work for now are a bit scattered, and I fear that problems might arise. The real solution is to find better employment, which has proven difficult in this economy.
Yes, this thread may be misplaced. Perhaps connections or non-detroit issues would have been the better choice.