Expert: Arthur Naman - 9/4/2011

Question
Hello,

I work as an independent contractor for a medical transcription company located in MN.  I live in a different state, and all the work is transmitted via the Internet.

The company gave us the option of direct deposit, with a $5 fee, vs. getting paid by a check (no fee). I chose getting paid by check since I began contracting for this company several years ago.

This week, they started direct deposit into my checking account, without notifying me or asking me what account I wanted the money put into.  They also deducted $5 from my pay for a direct deposit fee.

Is this legal?  I am reading online that mandatory direct deposit is not legal in MN for employees, but I can find nothing regarding independent contractors.

Thank you very much!

Answer
I am not aware of any rules pertaining to your situation. Since you not an employee you may not be able to effect how you get paid.

They might have been able to contact your bank to get your account number.

The problem is that it so much cheaper to do direct deposit that they may force their independent contractors to use that message to get paid.

I know this is not what you wanted to hear but I'm not sure if there's a way for you remedy the situation.