Direct Deposit Warning

Ram Man

Direct Deposit Warning
Many of you Im sure have a "Direct Deposit is a Condtion of Employment" clause in your contracts. While 9 out of 10 times this is a very convienent way for your family to have access to your money while you are away at work, it can turn into a nightmare.

Recently a coworker gave his 2 week notice to the company. The Company determined that he owed the company money. Without any legal judgement or court ordered garnishment of his wages, against the employee, the company used his direct deposit authorization to "Raid" his bank account for the sum that someone in Payroll dertermined that he owed the company.

Today I contacted my bank to ask if this was in fact possible, the below is my banks response:
"Giving your employer access to your account to directly deposit your payroll check does authorize them to withdraw funds, if needed. This will usually occur if there was a mistake in the amount that was credited to the account."
Bottom line is that to protect yourself and avoid a string of bounced checks that could affect your security clearance, have an account that only serves as a transit point for your paycheck. Transfer the funds out at 00:01 hrs on payday