Legal Question in Employment Law in Arizona
Company Inforced Payroll Deposits
Recently the company I work for decided to ''go green'' (which I am all for) and forced all employees to either sign up for direct deposit, or if you had no bank you have to sign up for a pay card. Also you are required to sign up for electronic paystubs online and can no longer get paper stubs unless you print them.
With the paycard you cannot cash it at a bank but can use it at some retailers as a debit card but it charges for each transaction. You can pull money out at atms but you have to pay the charge of using it and you can't pull out all your funds at once.
My question is if this is legal? Can they force a new system that charges you to get to your money?
1 Answer from Attorneys
Re: Company Inforced Payroll Deposits
This is an interesting question. The relevant Arizona statute states:
"Each employer shall, on each of the regular paydays, pay to the employees, in lawful money of the United States, or in negotiable bank checks or, in the case of the state or any political subdivision thereof, warrants payable on demand and bearing even date with the payday or, with the written consent of the employee, by deposit on the payday to the employee's credit at a financial institution of the employee's choice which is a member of the federal deposit insurance corporation or of any other comparable federal or state agency, all wages due the employees up to such date..."
My interpretation is that the program you described would be illegal. This is not a black and white issue, but I think you have a good argument.
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