Employee Checking Accounts

I would be interested to learn how other bankers handle employee checking accounts. Specifically, your policy regarding overdrafts, NSF, etc. At what point do you warn an employee or officer? At what point do you force the employee or officer to terminate the account?

We allow our employees 3 NSF items per calendar year; anything over that and they must close the account. We allow no overdrafts. Employee acounts are also monitored for unusual transactions, possible kiting, etc.

We hold employees to the same standards as for any other customer of the bank. No exceptions, no favors, no waiver of charges. As for the terms of the account, we pay to employees checking/NOW accounts. Those accounts are not service charged and free basic checks are provided.