We have a statement in our employee handbook Code of Conduct that employee should manage their personal financial matters prudently. Executive Management wants to establish standards for this. For example, employees cannot have more than X NSF's in a certain time period, or X number of late loan or credit card payments in a certain time period. Does anyone else have a standard they would be willing to share? My problem is middle management has differing thoughts on the number and time. Any other thoughts about this would be greatly appreciated.

We have a very liberal policy. These are all in the same calendar year. 1st and 2nd occurance we pay and charge if check is < $500, AND O/D is <$500 and give a verbal warning. 3rd occurance: Pay & charge if check is <$500 and O/D is < $500. Written statement goes in personnel file. 4th occurance: Pay and charge if check and O/D are < $500, written statement to personnel file and warning that the next will result in revoking checking privledges and/or termination. 5th occurance: Check is returned NSF, fee is assessed and DDA privleges are revoked. Possible termination. 6th occurance: employee terminated. Personally, I don't think they should have five chances prior to termination. Three at the max. A regular customer can go on-line and check their account balance every day, which is what I do. There is really no reason for an employee to bounce a check.

We treat employees the same as customers. An automatic matrix determines pay/no pay. Exceptions or refunds only to be made by Senior Mgmt. If their acct stays overdrawn, it will get chargedoff & sent to collection company like customers.

How will you monitor this if the employee does not bank at your institution? Are you setting yourself up for a policy that is unenforceable?

We allow 2 ODs at our bank in a 12 month period, 1st gets a warning, 2nd the account is closed and they are not able to have an account for 24 months.

We can only monitor what we have. We know some employee have accounts elsewhere. I wanted to set a standard for both loans and deposits, but our Collections Officer tells me some employeee are chronically late (more than 30 days). So do we apply this to all employees or new employees going forward?

When you say "apply" - do you mean if they exceed the standard you fire them? - or what is the point of having a "standard"? Unless you have a specific standard and it is absolutely equally enforced, it is just one more arrow in the unlawful/discriminatory discharge quiver. Treat your employees like any other customer and move on.

This is the approach we take, at least with respect to what we allow employees to do with their accounts. Any employee who qualifies for bounce protection is free to use it according to the limits/terms that apply to our other customers. Excessive use of bounce protection is handled for employees as it is for other customers as well. We don't take any action with respect to an employee's deposit relationship that we wouldn't take with any other customer's deposit relationship.

Some overdraft events, however, could result in action with respect to their employment relationship. Employees who require counseling/removal from overdraft protection because of excessive use are referred to HR. Overdrafts that exceed ODP limits, or by employees who don't have ODP are referred to HR. Dollar thresholds, frequency, etc. are spelled out in our policies.

Keep in mind, some of your employees have loans and checking accounts elsewhere. Your bank will not know anything about their delinquencies or NSF items. So, your bank only intends to take job action if the irresponsible employee banks with you, but no action will be taken against employees smart enough to bank somewhere else?

This is Pandora's Box.

Thank you all for the comments. Yes, the point is if you work here, you should bank here. (We know many don't because of privacy concerns. Who internally would see these accounts?)If you bank here, your accounts and loans should be in good order, e.g. no nsf's, late payments, etc.). I agree that setting a standard is opening a can of worms from both a monitoring and enforcement standpoint. I'm planning on discussing the points with executive management.

The last bank I worked for did not have any restrictions for accessing employee accounts...Anyone with a logon to the system can look up an employee by name and if they have an account, all your personal information/transactions are open to view....Who would want their personal business open to snooping eyes or auditors and HR for that matter...Wow, if you call in sick, make sure the only debit card transactions you make are at the doctors office and pharmacy only!