I must have lost my mind some time today because I find this thread confusing as all get out

First of all, cash? Or are they paying in check form to those not being paid electronically. They're not really going to mail out or deliver large envelopes of cash are they? Someone has to be speaking tongue in cheek here.
And requiring direct deposit from the bank when it offers this payroll option to only be deposited into your own bank...well heck it makes sense. Encourage your employees to enjoy the convenience of direct deposit and have their accounts here....ummm that's a no brainer. What bank wants their employees writing checks out in the community from another bank? In my mind, if you won't bank with your employer you're a great advertisement for why no one should bank with them. If they're so bad you won't bank there why should a client?
As to the last post, again, you want senior staff writing checks on Wells Fargo stationary while working for you? I sure don't. I'm dang proud of where I work and I bank here because of this. We have procedures in place that protect us from our spending habits, etc. being gossiped about. Rules about overdrafts, rules about sharing payroll information, etc. Every bank I've worked at has. Most even white out (electronically) the deposit amount on employee deposits for this protection.
Perhaps some of the banks responding are full of crooks

But we actually have some rather good clients who are also bank staff. We find the crook a rare commodity and assume we WANT our staff's accounts, both DDA and lending. Why not?
You're passing up on a huge amount of business by not wanting your staff to bank with you. You're also tellling the community through their check writing on OTHER bank's stationary, that they've found a "better" bank than yours to deal with. I'm glad we don't force our staff to issue this message in our community!