California Worker's Compensation - Help For Injured California Workers

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  1. #1
    Join Date
    Jul 2008
    Posts
    141

    Default Why Not Direct Deposit Funding?

    Hi

    I just don't understand why CA doesn't provide for direct deposit funding.


    I am totally dependent on family, friends, or WC to go places and yet another slap in the face is asking for a ride to a bank. In today's electronic society, it seems so primative that WC cannot provide direct deposit options.

    Is there some type of law or reason that WC cannot offer direct deposit funding to the IW?


    Regards,

  2. #2
    Join Date
    Sep 2008
    Posts
    132

    Default Re: Why Not Direct Deposit Funding?

    Depends on the IC, it is an option at the company I work for. I assume you have asked your CA, because it is much cheaper option of the IC to provide direct deposit.

  3. #3
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,017

    Default Re: Why Not Direct Deposit Funding?

    There is very little in the labor code addressing electronic deposit...

    4651. (a) No disability indemnity payment shall be made by any
    written instrument unless it is immediately negotiable and payable in
    cash, on demand, without discount at some established place of
    business in the state.
    Nothing in this section shall prohibit an employer from depositing
    the disability indemnity payment in an account in any bank, savings
    and loan association or credit union of the employee's choice in this
    state, provided the employee has voluntarily authorized the deposit,
    nor shall it prohibit an employer from electronically depositing the
    disability indemnity payment in an account in any bank, savings and
    loan association, or credit union, that the employee has previously
    authorized to receive electronic deposits of payroll, unless the
    employee has requested, in writing, that disability indemnity
    benefits not be electronically deposited in the account.
    (b) It is not a violation of this section if a delay in the
    negotiation of a written instrument is caused solely by the
    application of state or federal banking laws or regulations.
    (c) On or before July 1, 2004, the administrative director shall
    present to the Governor recommendations on how to provide better
    access to funds paid to injured workers in light of the requirements
    of federal and state laws and regulations governing the negotiability
    of disability indemnity payments. The administrative director shall
    make specific recommendations regarding payments to migratory and
    seasonal farmworkers. The Commission on Health and Safety and
    Workers' Compensation and the Employment Development Department shall
    assist the administrative director in the completion of this report.http://www.leginfo.ca.gov/cgi-bin/di...file=4650-4664
    The several times I have requested this, I get back a form authorizing the CA/IC to mail the check to the bank, instead of my address...leaving it to the EE's at the bank to ensure the timely deposit...what that does is extend the time by a few days for the EE's at the bank to actually open the mail, write out a deposit slip, and then mail me the receipt. Not what I had in mind at all...

    While most of the IC"s offer direct deposit to their own EE's it would stand to reason for there to be the same offered to IW's....certainly for those receiving ''life pensions''...the CA's always claim the TTD/TPD/PDA's checks are generated ''automatically'', and it's 'not their fault' a check doesn't issue timely... so, where IS the direct deposit. ?

    The answer from SCIF is..''You'll be one of the first to know when we initiate that feature..."

  4. #4
    Join Date
    Oct 2006
    Posts
    9,108

    Default Re: Why Not Direct Deposit Funding?

    number of comp payments for a carrier are not as predicable and stable year to year.
    most carriers don't even have electronic pay for doctors who have far more potential efficiencies.
    Maintaining a separate and secure e-payment system is very expensive and requires a very large guarenteed volume; not enough would exercise that option.
    Last edited by .SH; 12-16-2008 at 09:15 AM.

  5. #5
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,017

    Default Re: Why Not Direct Deposit Funding?

    Baloney...as you so often put it...

    If the carriers can provide electronic deposit for their EE's, then they have the system in place...there is no reason for them not to offer the service.
    Furthermore, if the e-deposits were to be initiated, the CA/assts would have one less item to occupy their desks...

    The only feasible reason for IW's receiving TTD/TPD benefits is the irregularities with the benefits continuing long term.
    If a CA can watch so close as to cancel a benefit check...they could easily handle e-deposits...particularly for those IW's holding 'life pensions'...

  6. #6
    Join Date
    Jul 2008
    Posts
    141

    Default Re: Why Not Direct Deposit Funding?

    Quote Quoting BvIA View Post
    Baloney...as you so often put it...

    If the carriers can provide electronic deposit for their EE's, then they have the system in place...there is no reason for them not to offer the service.
    Furthermore, if the e-deposits were to be initiated, the CA/assts would have one less item to occupy their desks...

    The only feasible reason for IW's receiving TTD/TPD benefits is the irregularities with the benefits continuing long term.
    If a CA can watch so close as to cancel a benefit check...they could easily handle e-deposits...particularly for those IW's holding 'life pensions'...
    I thought the same - if the company uses direct deposit for employees then why not for clients? I'm working with Liberty Mutual and the statement from my claims worker is that they send manual checks... I'm just so bummed becasue driving is not part of my daily activities... another event that makes little to no sense!

  7. #7
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,017

    Default Re: Why Not Direct Deposit Funding?

    Then do as they suggested to me... sign the authorization to have your checks sent directly to your bank, be sure to notify, and get the permission from the bank ahead of time so they know what to do when the check arrives.

    Banks do this all the time...anyone can send a mail in deposit to their banking instution...the only difference here is that there is no deposit slip enclosed, and that is why the bank has to agree to this process...

    There shouldn't be a bank fee for this...but then these days there seems to be some kind of fee for everything.

  8. #8
    Join Date
    Oct 2006
    Posts
    9,108

    Default Re: Why Not Direct Deposit Funding?

    you're welcome.
    Last edited by .SH; 12-17-2008 at 05:55 AM.

  9. #9
    Join Date
    Sep 2008
    Posts
    132

    Default Re: Why Not Direct Deposit Funding?

    Quote Quoting In pain in Cali View Post
    I thought the same - if the company uses direct deposit for employees then why not for clients? I'm working with Liberty Mutual and the statement from my claims worker is that they send manual checks... I'm just so bummed becasue driving is not part of my daily activities... another event that makes little to no sense!
    The CA doesn't know what they are talking about, because Liberty uses a centralized check issuer in Dover, NH or Boston, MA, and they have the capability do electronic payments (EFT) if you're benefits are going to continue for 6 months or longer at the same rate, so if you were going to have a back surgery and TTD would continue for 6 months or more, they can do it. Ask for the Supervisor, a lot of Liberty examiners are newer and don't know it's available. Most companies won't do them unless your going to be on benefits for a longer period of time with a consistent amount.

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