Direct Deposit

RuthG

I have employees in numerous states and would like them to all move onto direct deposit for our payroll. Can my company mandate this for employees out in the field?

Mikey1

Only a handful of states allow employers to mandate direct deposit. These states require that an employer have consent from the employee to deposit the check electronically, and often that consent must be in writing. I would recommend that you check the state law in each of the states where your employees are working, or in the alternative, just make direct deposit voluntary and you will be in compliance with all state laws.

IT HR

This website, HR.BLR.com, has a state by state comparison chart that gives the laws about direct deposit.  You can find it by clicking on the State Comparison Charts link under Quick Links.  The name of the document is Wage Payment Laws, by State.

http://hr.blr.com/hr_docs/15148_103.pdf 

 

TXHRGuy

However, those difficult states may allow you to pay into an employee's company-provided debit card. If their payroll laws say you can pay that way, you may be able to mandate that because it's not the same as EFT to the employee's own bank account.  Check with counsel before trying to side step laws. :-)