Direct Deposit Laws And Penalties In Tennessee
Location: Tennessee
My girlfriend works for a small business that is going to require their employees to accept direct deposit as the only form of compensation. Not only that, it MUST be deposited at the institution of their choosing, which is a local bank. No payment alternatives are going to be offered or permitted. Termination is on the table if this measure is refused by the employee.
I have researched the relevant laws and know that in TN this is not legal at the state or Federal level. She is not even remotely interested in everything that comes along with switching banks, not to mention the fact that she'd be closing an account with her current bank that she's had since she was 16 years old (37 now).
If they were to terminate her or another employee, what are the potential penalties for the business? She is close with one of the owners and is inclined to advise them to reconsider this move; knowing what's at stake could make for a convincing argument.
Thank you all!
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