What are other banks' policies regarding employee overdrafts? My previous employer did not allow them at all. My current employer is, IMHO, much too generous. I'm not talking about Reg O violations, just regarding non Reg O employees. I worry about employees being allowed to dig a hole they can't get out of, then being tempted "borrow" a little something just to tide them over. Advice?

Treat an employee no different than a normal customer. If they are abusing their account - close it.

All employee overdrafts are escalated to HR who tracks them per our code of conduct. Any employee who is a habitual offender can be terminated.

This is typically what I have seen at financial institutions - to have a clear policy for overdrafts of employee accounts defined in the HR policy.

A little harsh when you don't pay your tellers anymore than a 7-11 clerk.

I don't disagree, but that is what I have seen.

prior bank they were allowed one every 6 months, if they had a 2nd in 6 months account was closed and they could not reopen for 24 months. current bank we have something in policy that says they need to manage their money properly but doesn't detail what that means...

Our bank doesn't allow employee overdrafts.