Mandatory Direct Deposit

I work in HR for a Manufacturing Plant in Florence, KY with our home office in San Antonio TX.  The problem we have is that payroll is processed in San Antonio, TX and LIVE checks are mailed from Texas late Wednesday for Friday pay-date.  Employees who do not have Direct Deposit are having issues.  To avoid repeated issues with lost & late pay checks - are there any Kentucky Employers that Require (Mandatory) Direct Deposit? 

Kentucky Law states:  the employer may require direct deposit so long as you have the ability to withdraw your entire net pay without having to pay a fee to the financial institution. 

Would checking account fees or debit card service fees fall into that category and therefore not allow for the mandatory policy?

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  • What about issuing them prepaid cards that just get re-loaded at pay day rather than paper checks? My husband's company does this and he says the employees seem to like it.

  • Machell Searls - thanks for the reply - a quick question for you regarding your husbands prepaid check card.  Aren't their transaction fees associated & maybe even a monthly fee associate with that card?  We looked at a couple of cards & there are charges at what we found.  I appreciate the note.

  • Tom Crowe not sure what the fees are for them but ADP has a relationship with ALINE.

  • Machell Searls - thanks for the link - I will look into what they offer.

  • Just saw where SHRM released an article today about payroll debit cards.  i tried copying it here, but the link wasn't copying over correctly. 

  • Becky - thanks for the note - I looked & received that same communications today from SHRM.  I'll review but certainly appreciate you pointing that out - I probably would have missed it going about the daily to-do.

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