Is it reasonable for my employer to request that I sign a document that allows them to direct deposit as well as reverse payments?
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Is it reasonable for my employer to request that I sign a document that allows them to direct deposit as well as reverse payments?
Employer just asked me to sign a document stating that I give permission to direct deposit funds (which I’ve already had direct deposit with them for 4 years), as well as permission to reverse any payments in case a payment is made in error. Is that a normal request?
Asked on March 12, 2012 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It may not be "normal" in the sense of being the majority rule or norm, but it is not illegal.
1) An employer may require direct deposit.
2) While an employer cannot reverse payment of funds without employee consent, it is legal to have employees consent in advance to a reverse for an error or mistake. Of course, if they take money out when they should not, you would then seem to (check the language of the agreement before signing) have the right to bring a legal action to recover the money, if need be.
If an employee does not sign such an agreement, the employer could terminate him or her.
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