Direct Deposit as a Condition of Employment

[Devonai]

One thing I've always wondered is the legality of requiring a bank account and direct deposit as a condition of employment.  Both the National Guard and my last couple of civilian employers required it.  If one wanted to quit using a bank entirely (perhaps influenced by the latest round of Greek/Euro implosions), do you think that rejecting a potential applicant, or firing a current employee, would stand up in court?

Personally I like the ease of having direct deposit for my pay and direct debit for most of my bills.  However, it bothers me somewhat on a philosophical level that if I closed out my bank account I could get in trouble.  It might make for an interesting lawsuit.  What do you think?

[Tallpine]

It goes back farther than you think.

My first real job in 1971 required direct deposit into a checking account.

It was a bank 


I really don't like the idea of the dot gov doing direct deposit.  I still file paper tax returns and demand a paper check.

[lupinus]

Becoming more and more common.

My current employer gives two options, neither of which involve a piece of paper.

You can have direct deposit, or they will give you a debit type card which they load every payday. Only time the issue a paper check is if they screw something up and you bitch to the right person during the right phase of the moon after sacrificing the proper unblemished animal in the proper prescribed manner. 

[Boomhauer]

Doesn't matter whether you get a paper check or direct deposit for either pay or tax "refund". Either way the .gov knows how much you make as it's reported by your employer (unless you are under the table employed)...

If you are uncomfortable having your money in a bank account go ahead and draw it out when you get paid.

My agency still offers paper checks but direct deposit doesn't depend on the mail and our payroll people somehow manage excellent accuracy (compared to when I worked for the feds which was guaranteed to be a flusterlcuck every payday...) so I stick with having mine DD'd

[Tallpine]

Being way the heck out of town, the direct deposit works good for us.   

[cordex]

Find a bank with no or low checking fees and drain it on payday.

[drewtam]

One thing I've always wondered is the legality of requiring a bank account and direct deposit as a condition of employment.  Both the National Guard and my last couple of civilian employers required it.  If one wanted to quit using a bank entirely (perhaps influenced by the latest round of Greek/Euro implosions), do you think that rejecting a potential applicant, or firing a current employee, would stand up in court?

Personally I like the ease of having direct deposit for my pay and direct debit for most of my bills.  However, it bothers me somewhat on a philosophical level that if I closed out my bank account I could get in trouble.  It might make for an interesting lawsuit.  What do you think?

I think its similar to a company refusing to pay cash to employees, but instead requires payment by check. I think DD requirements are a modern version of the same thing.

[SteveS]

One thing I've always wondered is the legality of requiring a bank account and direct deposit as a condition of employment.  Both the National Guard and my last couple of civilian employers required it.  If one wanted to quit using a bank entirely (perhaps influenced by the latest round of Greek/Euro implosions), do you think that rejecting a potential applicant, or firing a current employee, would stand up in court?

Personally I like the ease of having direct deposit for my pay and direct debit for most of my bills.  However, it bothers me somewhat on a philosophical level that if I closed out my bank account I could get in trouble.  It might make for an interesting lawsuit.  What do you think?

Absent some kind of employment contract that specifies how you are paid, I am not aware of any law or regulation that would prevent an employer from requiring direct deposit.  I don't do employment law, so this isn't an area that I am overly familiar with.