Many employers pay their employees via direct deposit but is it lawful to do so?
The manner in which employees are paid, whether by direct deposit, check, debit card or otherwise is inherently an issue of state law. In some states, in order to properly pay an employee via direct deposit or debit card, employers must follow very particular, prescribed rules about which they may not be aware. Employers who fail to follow the required rules may be exposing themselves unnecessarily to significant penalties and damages even if they properly and timely pay their employees.
This topic will help employers understand the various state law requirements that must be followed in order to validly pay employees via direct deposit or debit card and thereby minimize the risk of penalties and fines for noncompliance. It will also explain why employers cannot rely solely on their payroll companies and instead must ensure that proper procedures are followed before they pay employees via direct deposit or debit card.
Fox Rothschild LLP
Partner
ggrindlinger@foxrothschild.com
(215) 299-2000
Glenn represents management in the full spectrum of labor and employment law matters. He regularly defends clients in single plaintiff cases and class actions involving claims of Fair Labor Standards Act (FLSA) and state wage and hour law violations. He also routinely represents clients in federal and state courts and arbitration fora and before government agencies in cases alleging breach of contract and breach of restrictive covenant as well as age, race, national origin, gender, disability, sexual orientation and religious discrimination, harassment and retaliation. Additionally, he defends employers in a variety of labor disputes before the National Labor Relations Board (NLRB).
Glenn's practice is also preventative in nature. He counsels clients on day-to-day employment, wage and hour, labor relations and contractual matters as well as the employment law issues that arise in connection with mergers and acquisitions. He also negotiates, drafts and revises collective bargaining agreements, employment contracts and severance agreements, employment law provisions to purchase sale agreements, restrictive covenants and noncompete agreements as well as drafts employee handbooks and training materials. In addition, he regularly conducts wage and hour audits for Fortune 1000 companies, small businesses and nonprofits.
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