As released by the City of Harrisburg:

CITY WILL REINSTATE DIRECT DEPOSIT BANKING FOR ALL CITY EMPLOYEES

City Mayor Linda D. Thompson announced today that direct deposit banking services will be reinstated to all city employees affective as soon as possible.

These services were unilaterally suspended by the City Controller and City Treasurer when they withdrew authority for use of their electronic signatures on pay checks in March of 2010.

At that time, City Administration made it clear that, "the administration did not stop direct deposit, but that the elimination was caused by the City Controller and City Treasurer's decision to rescind authority for their electronic signatures to be used."

Two City employee unions brought subsequent and successful actions against the elimination of direct deposit benefits before the Pennsylvania Labor Relations Board and the American Arbitration Association.

Both entities ruled on behalf of the employees that the action was a violation of the Collective Bargaining Agreement, and further ruled that the "City Controller and the City Treasurer must take whatever acts are necessary to restore direct deposit."

Mayor Thompson said today that, based on counsel from the City Solicitor, she has directed the City Human Resources Department to request a signed letter from the City Controller and City Treasurer authorizing the use of their signatures electronically so the direct deposit system could be reinstated immediately.

"The inconvenience of this entire matter to City employees and the legal fees paid by the Controller and the Treasurer, at this time in the City financial situation, is simply unwarranted and regrettable." Mayor Thompson said.