Mandatory DD in WI

LindaS

Does anyone know if an employer (private employer) can mandate payroll direct deposit in WI? Can someone direct me to where this information can be found?

Thanks

Michael Modl WI

Michael Modl
Editor, Wisconsin Employment Law Letter
Axley Brynelson, LLP


Linda:

The only answer to this question that I have ever found, and I believe it to be the current state of the law is contained in an August 23, 1991 opinion letter from the State's Labor Standards Bureau. Wisconsin employers may institute a mandatory direct deposit program as long as employees are given the right to designate the recipient bank, there are no charges for the employee participating in the program and an exception is available for employees who are inelligible for checking or savings accounts.

Mike Modl

LindaS

Thanks for the response. How would an employee be able to provide information stating that they are "ineligible" for a checking or savings account?

LivindonSouth

Good question. Our state also allows mandatory DD and we are going to that on January 1 of next year. About 50% of the hourly troops do not currently DD. I've had a number of banks try to get their toe in the door to position a table in the building to 'recruit DD' from our employees. Each bank promised they would guarantee any employee a free checking account if they would go with the program. I've also known of people who said the banks would not open an account for them due to bounced checks or owed fees, etc.

A credit union account is another idea and most areas have credit unions that will take just about anybody.