Can an employer require its employees to be paid by electronic automatic deposit?
• No. While the administrative ease of automatic deposit is attractive, Michigan’s Wage and Fringe Benefit Act (“Act”) prohibits mandatory automatic deposit. The Act provides that the “payment of wages shall be paid in United States currency or by a negotiable check or draft payable on presentation at a Bank.” It additionally provides “an employer or agent of an employer shall not deposit an employee’s wages in a bank, credit union or savings and loan association without the full, free and written consent of the employee or perspective employee.” There are no exceptions to this prohibition for new hires. • Can an employer deduct from an employee’s wages, educational assistance amounts which the employee has agreed to repay if he leaves employment before a specified date? • No, unless the deduction is provided in a collective bargaining agreement. Except for legally required deductions or those expressly permitted by a collective bargaining agreement, “an employer shall not deduct from
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- Can an employer require an electronic direct deposit?
