Introduced by Sen. Jason Allen (R) on December 2, 2003, to allow employers to pay wages by electronic funds transfer only. The bill would require employers who choose to do so to notify current employees and give them at least six weeks to establish an account at a financial institution to accept the deposit or transfer of wages.
Referred to the Senate Local, Urban, & State Affairs Committee on December 2, 2003.
Reported in the Senate on March 30, 2004, with the recommendation that the bill pass.
Substitute offered by Sen. Jason Allen (R) on June 30, 2004, to replace the previous version of the bill with one that does not allow an employer to pay wages by electronic funds transfer only, but does streamline the procedures for using this form of payment. Under current law, the employer must receive prior consent from each employee. The bill would eliminate this requirement, but allow employees to opt out and still receive a paper pay check. The substitute passed by voice vote in the Senate on June 30, 2004.
Passed 36 to 0 in the Senate on June 30, 2004, to allow employers to pay wages by electronic funds transfer or debit card without receiving prior written consent from each employee, which is required under current law. Employees would still be allowed to opt out and receive a paper pay check. An employer could not charge any fees for these payment methods. Who Voted "Yes" and Who Voted "No"
Received in the House on June 30, 2004.
Referred to the House Government Operations Committee on June 30, 2004.
Reported in the House on September 15, 2004, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Substitute offered in the House on December 8, 2004, to replace the previous version of the bill with one that incorporates technical changes resulting from committee testimony and deliberation. This version was subsequently superceded by another substitute with more technical changes. The substitute passed by voice vote in the House on December 8, 2004.
Substitute offered by Rep. James Koetje (R) on December 8, 2004, to replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described. The substitute passed by voice vote in the House on December 8, 2004.
Substitute offered in the House on December 9, 2004, to allow employers to pay employees with debit cards without permission from the employee. The substitute passed by voice vote in the House on December 9, 2004.
Passed 102 to 3 in the House on December 9, 2004, to allow employers to pay wages by debit card without receiving prior written consent from each employee, which is required under current law. Employer could also pay via electronic funds transfer if an employee agrees. An employer could not charge any fees for these payment methods. Who Voted "Yes" and Who Voted "No"
Received in the Senate on December 9, 2004, to concur with the House-passed version of the bill. Passed 36 to 0 in the Senate on December 9, 2004. Who Voted "Yes" and Who Voted "No"
Signed by Gov. Jennifer Granholm on January 3, 2005.
1) direct deposit by Anonymous Citizen on January 9, 2006 So much for having a right to choose, or freedom of your own decision. Especially so much for the protection of privacy. Also, with this change, if you write an objection to this, they can't do it against your will.......but, I guess you will have to be looking for a new job. Because that protection is gone. Reply
2) SB851 by Anonymous Citizen on December 4, 2003 "(2) An employer or agent of an employer shall not deposit an employee's wages in a bank, credit union or savings and loan association without the full, free and written consent of the employee or prospective employee, obtained without intimidation, coercion or fear of discharge or reprisal for refusal to permit the deposit."
The bill stikes the above from the current law.
It adds to the law: "(c) Direct deposit or electronic transfer to the employee's account at a financial institution. An employer that elects to pay wages under this subdivision shall provide its employees with notice of election and a period of at least 6 weeks for its current employees to establish an account at financial institution to accept the deposit or transfer of wages."
My own personal experience is that I couldn't find a convenient banking facility in a reasonable time frame. I tried because it would have been easier than collecting payment in the mail, opening, signing and the take it to be deposited. (Maybe I'm inherently lazy.) Have you ever tried to talk a financial institution into doing something new? Reply
3) 2003 Senate Bill 851 (Streamline electronic pay check procedures) by admin on January 1, 2001 Introduced in the Senate on December 2, 2003, to allow employers to pay wages by electronic funds transfer or debit card without receiving prior written consent from each employee, which is required under current law. Employees would still be allowed to opt out and receive a paper pay check. An employer could not charge any fees for these payment methods
The vote was 36 in favor, 0 opposed and 2 not voting