Legal Question in Investment Law in California

Re: Need for indiv accounts for employee deposits?

Why do you care? Are you planning to operate a hospital?

Seriously, this sounds like hokum to me. Possibly it is a consequence of a union contract, or some other private understanding. It doesn't sound like a state law.

The nearest thing I can think of that comes up in the routine practice of law is security deposits taken by landlords from tenants. Not only is the landlord not required to place the funds in any particular kind of account, the landlord is not required to pay interest.

Further, banks absolutely hate having to open and maintain accounts with $25 balances, especially interest-bearing accounts.

I could be wrong, but my hunch is that you misunderstand your friend, or your friend means something different than you have in mind when you say "account." In business parlance, an "account" can be nothing more than a distinct line or entry in an accounting system.

And the question persists, what's it to you? We here at LawGuru are trying to solve life-changing problems for people losing their homes, businesses or personal liberty. How does the answer to this question make a difference in your life?