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Direct deposit is so 20th Century! Many millennials favor paycards

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in Office Management,Payroll Management

Direct deposit was once new and novel. But we’re now about two-thirds through the second decade of the 21st Century, and most employees do have their pay deposited directly into their bank accounts. Most isn’t all, however, and that doesn’t count employees who don’t have bank accounts. For those employees, plastic paycards may be an answer.

Paycards. Some Gen Xers have never written a check and it’s quite likely many millennials never will. They’re comfortable with debit cards. So offering reloadable paycards to them is one way to ramp up electronic pay. But be careful.

Case: A Pennsylvania Superior Court recently ruled that mandatory use of paycards is prohibited under Pennsylvania law. It rejected the employer’s argument that paycards were the functional equivalent of checks or lawful money. Lawful money, the court said, does not include a debit card. (Siciliano v. Mueller, No. 1321 MDA 2015, Penn. Supr. Ct., 2016)

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