California Employment Law
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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?