Expert: Arthur Naman - 4/20/2009

Question
Payroll did not arrive in my direct deposit account. Check processing co says they did everything right so it's not their problem. My bank says they never got the direct deposit. My employer says it's not his problem that the deposit didn't show up at my bank so now it's up to me to solve.  What are my rights?  My wife and I can't pay our bills.

Answer
Your not receiving your paycheck is your employer's responsibility, I believe. Keep in mind that this is a legal question, not an accounting question, although I generally understand the accounting steps to getting a paycheck direct deposited into an employee's account.

Your employer in effect hired their bank to make the payment to you via direct deposit; I do not believe that absolves your employer of their responsibility to get your paycheck to you.

You employer should be able to contact the payroll company they use (if any) and/or their bank. Your employer will have a copy of the disbursement from their bank account.

If the transfer did not occur, the sending bank likely has information as to why not. Since your employer is the customer of the bank, not you, your employer should be able to contact their bank to find out what happens.

If this is not resolved quickly, I would encourage you to contact a labor attorney in your area to find out what to do next. I would consider discussing this with your boss, and if not resolved, going up the line until someone has the authority to "make things happens."