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Joseph, Lawyer
Category: California Employment Law
Satisfied Customers: 5299
Experience:  Extensive experience representing employees and management
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Ive been having a problem with my personal bank placing a

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I've been having a problem with my personal bank placing a hold on my payroll check till they clear due to 2 different NSF issues from the signer of the check. This has been going on now for over 2 months, the first time I overlooked the hold but the next time I became aware of it and after finding out from the bank why I brought it to my employers attention who in turned said it was not their problem nothing was wrong with their checks, it was all my banks fault and that I was they only one who was having this issue. They requested I either go with direct deposit (which they charge a fee for), take it to their bank to cash (who charges $7.50 for business checks), or open a new banking account ( I've been with mine for a longtime)..The following pay period which was 2 weeks later I again deposited my payroll check and once again it was placed on hold till it cleared, this time I contacted the owner of the company as well as the payroll department and was told exactly the same thing by the owner this time he also requested that I have the manager from my bank call him to discuss this matter which I did and she informed for that for over a week she called, emailed him and he has not responed to her...
I've been told by many (some who work as HRs for other companies) that what he is doing is wrong. What can I do and can you help or refer me to someone.

Thank you XXXXX
Hello and welcome to JustAnswer.

I'm sorry to hear about your situation and hope I can help.

Are you stating that your payroll checks are actually bouncing, or is your bank just placing a hold on the checks and eventually releasing the funds to your account?
Customer: replied 4 years ago.
Sir my bank informed me that after 2 of my payroll checks came back as NFS they started placing a hold on further checks to protect both myself and the bank from lossesin the event the check is returned unpaid from the bank which it was drawn..This is what I was told by my bank
I'm not sure what you mean by 'what he is diong is wrong.

It is illegal for you to be issued checks with non-sufficient funds and to not be paid timely.

If your employer continues to do this then you can file a wage claim against your employer for the amount that you are owed in wages plus a day's of penalties per day you are required to wait to receive your wages.

You can file a wage claim using the forms available online here:

I also suggest that you call the Division of Labor Standards Enforcment to discuss your situation with them. Unfortunately, your employer can require that you switch to direct deposit if that is the payment method that is being used, and your bank should not be charging you for a direct deposit transaction.

You can contact the Dvision of Labor Standards Enforcement closest to you here:
Joseph and other California Employment Law Specialists are ready to help you
Customer: replied 4 years ago.

It is not my bank that would be charging for direct deposit, but it is the employer who is charging a fee to the employees who want to use this service.


Anyother company I've ever worked for has never charged for direct deposit and others including my bank that I've discussed this with have all said the same thing, "why is your company charging you to use direct deposit".


What it seems to be is that he is passing on the charges that his bank is charging him to his employees. Do you know if this is legal for him to do?

No, it is not legal for the employer to charge employees to use direct deposit, as that is an unauthorized deduction from the employees' checks.

I suggest that you call the Department of Industrial Relations to make a complaint regarding this practice.
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