Paycheck Cashing Regulations
HR Mouse
53 Posts
I have heard that there are different paycheck cashing regulations by state. From what I heard, the State of Illinois' regulations are that every employee should have the capabilities to cash their paychecks at no charge to them and it should be provided/linked up by the employer. I can't find anything abou this......does anyone know about any regulations stating we have to make sure our employee's have a place to go to have their checks cashed for free? I know our employees can go to our bank (the bank in which their paycheck is drawn on) and cash it there with no charge, but does a regulation state there needs to be something else set up besides that option?
Any help is much appreciated!
~ Mouse in Illinois ~
Comments
§115/4 [...] All wages and final compensation shall be paid in lawful money of the United States, by check, redeemable upon demand and without discount at a bank or other financial institution readily available to the employee, or by deposit of funds in an account in a bank or other financial institution designated by the employee. No employer may designate a particular financial institution, bank, savings bank, savings and loan, or currency exchange for the exclusive payment or deposit of a check for wages.
I'm not sure what they mean "without discount". A lot of banks now charge to take payroll checks EVEN DRAFTED FROM THE SAME INSTITUTION, but do not charge for personal checks drafted from that institution. If such service charges constitute discounting for the purposes of the wage payment law, this could create a bit of a stink.
Excellent! Thanks!