Are employers legally liable if they force their employees to use direct deposit and the system is hacked?

  • 2
    Which system is hacked? your bank's or your employer's? Nov 29 '15 at 17:35
  • Laws vary from country to country. Which country are you from?
    – littleadv
    Nov 29 '15 at 20:22
  • Is it direct deposit into your bank account, or direct deposit onto a debit card they setup? Nov 29 '15 at 22:24

If the employer's system is hacked and the money never reaches your bank, the employer still owes you your salary.

If the bank's system is hacked, it's the bank's obligation to make good your losses; if they can't, I believe that's when FDIC kicks in. (Assuming you're in the US; if not, find out what insurance banks in your country have.)

You're probably better protected via direct deposit than if your employer was giving you a physical check.

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