Is it legal to charge independent contractors a fee for using direct deposit?

"Does anyone know of a website that clearly states that it is legal to charge an independent contractor a fee for using direct deposit?"

That's not how the law works.

EVERYTHING is legal, unless there is a law that specifically says that it's not.

If, in some State, there is a law (And it would to be a State law) that says a company cannot charge a fee for paying vendors or contractors by direct debit then in that State you can't do it.

In general, it would be a matter for contract law - the contract under which the contractor agrees to perform a certain task for you for a certain sum should also address terms of payment.

I'd be more worried about making sure every 'i' is dotted and every 't' is crossed so far as being sure that they meet the statutory requirements for being classified as contractors. Calling someone a 'contractor' when he doesn't meet the strict definition of one is the second most common reason for labor board fines, right after calling a salaried employee overtime exempt when he doesn't meet those requirements.

As an example.... a supermarket chain here just got fined millions for calling the cleaners who came in before the store opened to wash and wax the floors contractors instead of employees. Why? Because they told them to do it in the hour before each store opened. As soon as you tell someone *when* to work, you are "exercising control", and they are an employee.

Richard

Direct deposit is an ACH cash transfer. Independent contractors are handled like vendors, not employees. Therefore it is the stipulations of the contract that would apply as to whether a service fee can be deducted from payment for using ACH transfers rather than payment via check.

You're not supposed to charge fees on any paychecks, that's theft and is illegal. If you want to write up a bill for something and give it to the workers to pay then that's something else entirely. But payment should only have taxes deducted and only if they are employees.

That's being petty. I've been an independent contractor for years. I wouldn't do work for you because I don't like the way you do business.

Yes it is legal, IC's know or should know in advance what the contract say's in relation to the pay they receive for the Job they are doing, this all depends upon how big the Job is & the company, there are many variables, some companies do this

it would be state law if there's a law. impliedly, the answer is don't charge one. cutting a physical check costs more than sending an order to the bank and you have a legal obligation to pay in full and on time

you cannot charge them period, it is their paycheck and they have the right to request payment in any form as check, cash, credit card or direct deposit, you must abide by their desires and cannot charge them for it!