Paycard Laws by State

Can you require an employee to receive wages via direct deposit?

Alabama does not have specific laws governing direct deposit. However, federal law allows employers to make direct deposit mandatory provided one of the two following conditions are met:

• The employee must be able to choose the financial institution where their direct deposit is sent
• If the employer requires that all employees’ direct deposits are sent to a specific financial institution, another method of payment (paper check) must be offered.

Does the employee need to consent to receiving their wages on a payroll card?

Alabama does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What if the employee requests a paper check?

There are no specific requirements for accessing wages in Alabama, but it is a recommended best practice that employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state requirements for accessing wages?

There are no specific regulations in Alabama regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

What are the state regulations for payroll card fees?

Alabama does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

References

No applicable statute.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Alaska, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Payroll card enrollment must be voluntarily authorized by the employee and employees must be given the option to receive a paper check or bank account direct deposit.

What if the employee requests a paper check?

Employees must be given the option of receiving a paper check.

What are the state requirements for accessing wages?

Employees must be provided a written or electronic statement of earnings and deductions each pay period in accordance with 8 AAC 15.160.

In Alaska, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

In Alaska, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

No applicable statute.

References

An employer of labor performing services in this state shall pay the wages or other compensation for the services with lawful money of the United States or with negotiable checks, drafts or orders payable upon presentation without discount by a bank or depository inside the state. Alaska Stat. § 23.10.040.

An employer may not deposit wages due or to become due or an advance on wages to be earned in an account in a bank, savings and loan association or credit union unless the employee has voluntarily authorized the deposit. All deposits under this section shall be in a bank, savings and loan association or credit union of the employee’s choice. Alaska Stat. § 23.10.043.

Can you require an employee to receive wages via direct deposit?

Direct deposit enrollment must be voluntarily authorized by the employee and wages must be deposited into a financial institution of the employee’s choosing.

Does the employee need to consent to receiving their wages on a payroll card?

Payroll cards may be used if an employee opts-in or if the employee enrolls in direct deposit and does not specify a financial institution for the deposit.

What if the employee requests a paper check?

An employer may choose to pay wages via check; however, the statute is unclear as to whether payment via check is required upon request.

What are the state requirements for accessing wages?

Employees must be given a written or electronic statement of the employee’s earnings and withholdings.

Employees must have access to one free withdrawal for each deposit of wages per pay period but not more frequently than once per week.

What are the state regulations for payroll card fees?

Employees must provide a list of all fees associated with the use of payroll cards.

References

An employer may choose one of the following methods to pay wages…:

1. In lawful currency of the United States.

2. In negotiable bank checks.

3. In the case of this state or any political subdivision of this state, warrants payable on demand and bearing even date with the payday.

4. With the written consent of the employee, by deposit on the payday to the employee’s credit at a financial institution of the employee’s choice that is a member of the federal deposit insurance corporation or any other comparable federal or state agency.

5. If the employer has offered deposit on the payday to the employee’s credit at a financial institution of the employee’s choice that is a member of the federal deposit insurance corporation or any other comparable federal or state agency and the employee does not provide consent and does not designate a financial institution, by deposit on the payday to the employee’s credit to a payroll card account. Ariz. Stat. § 23-351(D).

When an employee’s wages are paid by deposit in a financial institution the employee shall be furnished with a written or electronic statement of the employee’s earnings and withholdings. Any wage deposit plan adopted by an employer shall entitle the employee to one withdrawal for each deposit, free of any service charge to the employee. The consent of an employee for payment of wage by deposit in a financial institution shall not constitute a prior assignment of wages to the financial institution and is revocable at any time prior to the transmittal to the financial institution by the employer. No person shall be denied employment nor discharged or reprimanded for refusal to consent to payment of wage by deposit in a financial institution. Ariz. Stat. § 23-351(E).

When an employee’s wages are paid to a payroll card account the employee shall be furnished with a written or electronic statement of the employee’s earnings and withholdings. A payroll card account plan adopted by an employer shall entitle the employee to one free withdrawal for each deposit of wages per pay period but not more frequently than once per week. An employer shall also provide a list of all fees associated with the use of an employer provided payroll card account to an employee who receives wages by deposit to a payroll card account. Ariz. Stat. § 23-351(F).

Each employer in this state, in its discretion, may pay all wages due an employee by deposit on the payday at a financial institution of the employee’s choice or, if the employee does not designate a financial institution, to a payroll card. For the purposes of this subsection, “financial institution” means a member of the federal deposit insurance corporation or of any other comparable federal or state agency. Ariz. Stat. § 23-351(H).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Arkansas, provided employees can still receive a paper check upon request.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in Arkansas, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

In Arkansas, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

There are no specific requirements for accessing wages in Arkansas, but it is a recommended best practice that employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

There are no specific regulations in Arkansas regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

Reference

All employees shall be paid in currency or by check or electronic direct deposit into the employee’s account. Ark. Code  § 11-4-402(b)(1)(A).

(1) The employee may opt out of electronic direct deposit by providing the employer a written statement requesting payment by check.

(2)  Notwithstanding any provision to the contrary, an employee has a right to be paid in currency if the employer has at any time paid the employee with a check drawn on an account with insufficient funds.

(3)  This subsection (b) does not apply to any demand or claim by the Department of Labor. Ark. Code  § 11-4-402(b)(1)(B).

It shall be unlawful for any corporation, company, firm, or person engaged in any trade or business in this state, either directly or indirectly, to issue, sell, give, or deliver to any person employed by the corporation, company, firm, or person, in payment of wages, whether the wages are earned or not, any scrip, token, draft, check, or other evidence of indebtedness payable or redeemable otherwise than in lawful money, at the next regular payday of the corporation, company, firm, or person. Ark. Code  § 11-4-403(a).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in California, provided employees consent in writing to receiving direct deposit

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in California.

What if the employee requests a paper check?

California does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

In California, employees must be given the option to choose the financial institution to which their wages are deposited. The financial institution chosen by an employee must have a place of business in California.

Employees must have immediate and free access to their wages in full.

What are the state regulations for payroll card fees?

Employees must have immediate and free access to their wages in full.

References

No person, or agent or officer thereof, shall issue in payment of wages due, or to become due, or as an advance on wages to be earned:

(1) Any order, check, draft, note, memorandum, or other acknowledgment of indebtedness, unless it is negotiable and payable in cash, on demand, without discount, at some established place of business in the state, the name and address of which must appear on the instrument, and at the time of its issuance and for a reasonable time thereafter, which must be at least 30 days, the maker or drawer has sufficient funds in, or credit, arrangement, or understanding with the drawee for its payment.

(2) Any scrip, coupon, cards, or other thing redeemable, in merchandise or purporting to be payable or redeemable otherwise than in money. Cal. Lab. Code § 212(a).

Nothing contained in Section 212 shall:

(d) Prohibit an employer from depositing wages due or to become due or an advance on wages to be earned in an account in any bank, savings and loan association, or credit union of the employee’s choice with a place of business located in this state, provided that the employee has voluntarily authorized that deposit. If an employer discharges an employee or the employee quits, the employer may pay the wages earned and unpaid at the time the employee is discharged or quits by making a deposit authorized pursuant to this subdivision, provided that the employer complies with the provisions of this article relating to the payment of wages upon termination or quitting of employment. Cal. Lab. Code § 213.

The Division of Labor Standards Enforcement (“DLSE”) takes the position that payroll cards involve both the direct deposit of wages and a means of accessing those wages using an electronic card. Accordingly, such a program must comply with both section 212(a) and section 213(d) of the Labor Code. DLSE Op. Let. Nos. 2008.07.07, available at https://www.dir.ca.gov/dlse/opinions/2008-07-07.pdf

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Colorado, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employers can authorize full deployment of paycards if either the employee is provided one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account, or the employee is able to choose another form of wage payment.

What if the employee requests a paper check?

A request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Colorado, an employee who chooses to be paid by direct deposit to a payroll card must be permitted to withdraw an amount up to and including the total amount of the employee’s entire net pay, at least once per pay cycle, by a free transaction from the employee’s payroll card account.

In Colorado, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

There are no specific regulations in Colorado regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

(1)  Negotiable instrument required. No employer or agent or officer thereof shall issue, in payment of or as an evidence of indebtedness for wages due an employee, any order, check, draft, note, memorandum, or other acknowledgment of indebtedness unless the same is negotiable and payable upon demand without discount in cash at a bank organized and existing under the general banking laws of the state of Colorado or the United States or at some established place of business in the state. The name and address of the drawee shall appear upon the face of the order, check, draft, note, memorandum, or other acknowledgment of indebtedness; except that such provisions shall not apply to a public utility engaged in interstate commerce and otherwise subject to the power of the public utilities commission. At the time of the issuance of same, the maker or drawer shall have sufficient funds in or credit with the bank or other drawee for the payment of same. Where such order, check, draft, note, memorandum, or other acknowledgment of indebtedness is protested or dishonored on the ground of insufficiency of funds or credit, the notice of memorandum of protest or dishonor thereof shall be admissible as proof of presentation, nonpayment, and protest.

(2)  Direct deposit. Nothing in this article shall prohibit an employer from depositing wages due or to become due or an advance on wages to be earned in an account in any bank, savings and loan association, credit union, or other financial institution authorized by the United States or one of the several states to receive deposits in the United States if the employee has voluntarily authorized such deposit in the financial institution of the employee’s choice.

(2.5)  Paycard. (a) Nothing in this article shall prohibit an employer from depositing an employee’s wages on a paycard, so long as the employee:

(I)  Is provided free means of access to the entire amount of net pay at least once per pay period; or

(II)  May choose to use other means for payment of wages as authorized in subsections (1) and (2) of this section.

(b)  As used in this section, “paycard” means an access device that an employee uses to receive his or her payroll funds from his or her employer. Colo. Rev. Stat. § 8-4-102.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Connecticut, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in [State] and must be given the option of receiving wages by direct deposit and check.Consenting to this method of payment must not be a condition of employment.

What if the employee requests a paper check?

An employer may offer the use of payroll cards provided each employee has the option of receiving wages by direct deposit and by negotiable check.

What are the state requirements for accessing wages?

Prior to consenting to receiving wages via paycards, employees must be provided with a notice that states that enrollment is voluntary and includes a fee schedule, the terms and conditions, a description of how to access wages without cost, methods for checking the balance, and a statement that third parties may assess fees.

Employees must be provided the methods available for accessing their full wages in lawful money of the United States without any transaction fee to the employee for such access and for avoiding or minimizing fees for use of the payroll card, including, but not limited to, a clear and conspicuous notice describing how to access wages, salary or other compensation without cost at automated teller machines, depository financial institutions or other convenient locations.

Each pay period, but not more frequently than each week, an employee with a payroll card shall be allowed to make at least three withdrawals from the payroll card account at no cost to the employee, one of which permits withdrawal of the full amount of the employee’s net wages, salary or other compensation for the pay period at a depository financial institution or other convenient location.

Employers in Connecticut must offer a pay stub which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

None of the employer’s costs associated with paying wages using a payroll card or establishing the payroll card account shall be deducted from or charged against the wages delivered to the employee.

Fees are not permitted for issuing the payroll card, transferring wages, maintenance, providing a replacement card each calendar year, closing the account, maintaining a low balance, inactivity or dormancy for the first 12 months or point-of-sale transactions. No fees or interest may be imposed upon the employee for an overdraft or the first two declined transactions of each calendar month.

References

[E]ach employer, or the agent or representative of an employer, shall pay weekly, or once every two weeks, all wages, salary or other compensation due each employee on a regular pay day, designated in advance by the employer using one or more of the following methods: (A) Cash; (B) by negotiable checks; (C) upon an employee’s written or electronic request, by direct deposit; or (D) by payroll card, provided the requirements of section 31-71k are satisfied. Conn. Gen. Stat. § 31-71b(a)(1).

An employer may offer the use of payroll cards to deliver wages, salary or other compensation to employees, provided:

(1) Each employee has the option of receiving wages, salary or other compensation by direct deposit and by negotiable check; and

(2) The employee voluntarily and expressly authorizes, in writing or electronically, the payment of wages, salary or other compensation by means of a payroll card account without any intimidation, coercion or fear of discharge or reprisal from the employer for the employee’s refusal to accept such payment of wages, salary or other compensation by means of a payroll card account. No employer shall make the payment of wages, salary or other compensation by means of a payroll card account a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee.

(c) Prior to an employee electing to receive wages, salary or other compensation by means of a payroll card account, each employer using payroll card accounts to deliver wages, salary or other compensation to an employee shall provide such employee with clear and conspicuous notice, in writing, and in the language the employer normally uses to communicate employment-related polices to his or her employees, of the following:

(1) That payment of wages, salary or other compensation by means of a payroll card account is voluntary and the employee may instead choose to receive wages, salary or other compensation by either direct deposit or by negotiable check;

(2) The terms and conditions relating to the use of the payroll card, including an itemized list of fees that may be assessed by the card issuer and their amounts;

(3) The methods available to employees both for accessing their full wages, salary or other compensation in lawful money of the United States without any transaction fee to the employee for such access and for avoiding or minimizing fees for use of the payroll card, including, but not limited to, a clear and conspicuous notice describing how to access wages, salary or other compensation without cost at automated teller machines, depository financial institutions or other convenient locations;

(4) The methods available to employees for checking their balances in the payroll card account without cost; and

(5) A statement indicating that third parties may assess additional fees.

(d) Each pay period, but not more frequently than each week, an employee with a payroll card shall be allowed to make at least three withdrawals from the payroll card account at no cost to the employee, one of which permits withdrawal of the full amount of the employee’s net wages, salary or other compensation for the pay period at a depository financial institution or other convenient location.

(e) None of the employer’s costs associated with paying wages, salary or other compensation using a payroll card or establishing the payroll card account shall be deducted from or charged against the wages, salary or other compensation delivered to the employee.

(f) (1) Neither the employer nor the payroll card issuer shall assess a fee to the employee for any of the following, regardless of how such fee is labeled: (A) Issuing the initial payroll card; (B) transferring wages, salary or other compensation from the employer to the payroll card account; (C) maintaining a payroll card account; (D) providing one replacement card per calendar year upon the employee’s request; (E) closing the payroll card account; (F) maintaining a low balance; (G) inactivity or dormancy of the payroll card account for the first twelve months of inactivity or dormancy; or (H) point-of-sale transactions.

(2) A payroll card may bear an expiration date, provided (A) the funds in the payroll card account do not expire; and (B) prior to the expiration date, the employee is provided with a replacement card, without charge, during the period when wages, salary or other compensation are applied to the payroll card account by the employer and for sixty days after the last transfer of wages, salary or other compensation is applied to the payroll card account by the employer.

(3) The payroll card account may escheat to the state pursuant to the provisions of section 3-57a.

(g) Each employer shall provide the employee a means of checking his or her payroll card account balance through an automated telephone system, automated teller machine or electronically without cost to the employee twenty-four hours per day and seven days per week.

(h) Neither the payroll card nor the payroll card account shall be linked to any form of credit and, to the extent technologically feasible, the payroll card account shall not allow for overdrafts. No fees or interest may be imposed upon the employee for an overdraft or the first two declined transactions of each calendar month.

(i) The employer shall furnish the employee with a statement of deductions made from his or her wages, salary or other compensation for each pay period in accordance with section 31-13a.

(j) Each employee with a payroll card shall be permitted, on timely notice to the employer and without cost or fear of reprisal or discrimination or the assessment of any penalty, to receive his or her wages, salary or other compensation by direct deposit into a personal account at any bank, Connecticut credit union or federal credit union that has agreed to accept such deposits or by negotiable check. The employer shall begin payment by direct deposit as soon as practicable but not later than the first pay day after fourteen days from receiving both the employee’s request and the account information necessary to make the deposit, or by check as soon as practicable but not later than the first pay day after fourteen days from receiving the employee’s request.

(k) Consumer protections, including transaction histories and advanced notice of changes in terms and conditions, shall be provided to each employee with a payroll card in accordance with Regulation E, 12 CFR Part 1005, as from time to time amended. Notwithstanding the foregoing, employees shall be provided the option to receive, on a monthly basis, automatic written transaction histories at no cost to the employee for a term of at least twelve months or until such option is cancelled by the employee. Renewal of the option to receive written transaction histories at no cost to the employee may be required by the employer upon expiration of the initial twelve-month term, and each twelve-month term thereafter.

(l) The payroll card shall be associated with an automated teller machine network that ensures the availability of a substantial number of in-network automated teller machines in the state. Conn. Gen. Stat. § 31-71k.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Delaware, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Payroll cards are permitted provided that employers must pay the employee by cash, check, or direct deposit when requested in writing by the employee.

What if the employee requests a paper check?

An employer must pay an employee via check when requested in writing by the employee.

What are the state requirements for accessing wages?

Employees must be able to receive full payment of wages on the regular payday without cost.

In Delaware, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

There are no specific regulations in Delaware regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer shall pay all wages due to the employer’s employees . . . in lawful money of the United States or checks provided suitable arrangements are made by the employer for cashing such checks for the full amount of the wages due at a bank or other business establishment convenient to the place of employment. [U]pon written request of an employee, an employer may pay [ ] all wages due by credit to a bank account designated by the employee. 19 De. Code § 1102(a).

The Department of Labor finds payroll debit cards to be beneficial and acceptable as a form of wage payment under the Wage Payment and Collection Act. Under all circumstances, the use of payroll debit cards as a form of wage payment must comply with all conditions set forth in the Act including, but not limited to the following:

·         Employers must inform new employees in writing, at the time of hire, when the employer will fulfill the exchange rate obligations (§1108 (1));

·         Employers must pay the employee within 7 days from the close of the pay period for the work performed (§1102 (b));

·         Employers must pay the employee no less than once a month on a day designated in advance by the employer (§1102 (a));

·         Employers must pay the employee in legal tender of cash, check payable on demand, or by credit to the employee’s bank account when requested in writing by the employee (§1102(a));

·         Employers must pay the full wages owed on the regular payday and account for lawful deductions specified under §1107 and related regulations; and

·         Employers must provide a written record reciting the hours worked, hours paid, benefits accrued, lawful deductions, and any information for historical purposes effecting the wage arrangement for three years (§1108 (4) and (6)). Code of Del. Regs. 19-1000-1324.

Delaware’s Wage Payment and Collection Act requires the payment of wages to employees in lawful money or checks payable on demand, “provided suitable arrangements are made by the employer for cashing such checks for the full amount of the wages due at a bank or other business establishment convenient to the place of employment. Employers may comply with this requirement by issuing a payroll debit card which provides the functional equivalent of cash or a check. It is the employers’ responsibility to effectuate a payroll debit card system which will allow full payment of wages on the employee’s regular payday and without cost to the employee. Employers may use a pre-paid debit card or general payroll fund account to establish suitable arrangements for converting wages into employee’s disposable income. Code of Del. Regs. 19-1000-1324(2.0).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in D.C., provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in the District of Columbia, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

The District of Columbia does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

Wages must be payable on demand.

What are the state regulations for payroll card fees?

There are no specific regulations in the District of Columbia regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Wages shall be paid on designated paydays in lawful money of the United States, or checks on banks payable upon demand by the bank upon which drawn. DC Code § 32–1302.

The term “wage” means compensation due to an employee by reason of the employee’s employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, including allowances as may be permitted by any regulation issued under §§ 32-1003 and 32-1006. D.C. Code § 32-1002.

Q. Can an employer pay its employees by direct deposit and make this a condition of

employment?

A. Yes.  The D.C. Department of Employment Services, Office of Wage and Hour Frequently Asked Questions, https://does.dc.gov/sites/default/files/dc/sites/does/page_content/attachments/FAQs%20for%20OWH-Final.pdf.

Can you require an employee to receive wages via direct deposit?

The employee must authorize direct deposit in writing. Employers cannot condition the employment of any employee solely for refusing to authorize direct deposit of wages.

Does the employee need to consent to receiving their wages on a payroll card?

Payroll cards must be negotiable, payable in cash, on demand, without discount at an established place of business in Florida. The name and address of bank must appear on the instrument or in the payroll card issuing materials.

What if the employee requests a paper check?

In Florida, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Florida, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

Wages must be available without discount.

References

Any order, check, draft, note, memorandum, payroll debit card, or other acknowledgment of indebtedness issued in payment of wages or salary due or to become due must be negotiable and payable in cash, on demand, without discount, at some established place of business in the state, the name and address of which must appear on the instrument or in the payroll debit card issuing materials, and at the time of its issuance, and for a reasonable time thereafter, which must be at least 30 days, the maker or drawer must have sufficient funds or credit, arrangement, or understanding with the drawee for its payment. Fla. Stat. § 532.01.

(1) None of the provisions of this chapter shall be deemed or construed to prohibit the payor of wages or salary from causing the amount of such wages or salary to be deposited directly to the account of the payee in a financial institution by electronic or other medium if such direct deposit has been authorized in writing by the payee and if the payee has designated in writing the financial institution of her or his choice in which such deposit is to be made. However, at the time the order for payment of such direct deposit is received by the drawee, the payor of such wages or salary must have sufficient funds or credit or an arrangement or understanding with the drawee for payment thereof.

(2) No employer or payor of wages or salary shall terminate the employment of any employee or payee solely for refusing to authorize such direct deposit of wages or salary. Fla. Stat. § 532.04.

Note: There are additional rules that apply to day labor pools. See Fla. Stat. § 448.24(2).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Georgia, provided that employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees can revoke consent to receiving their wages via paycard at any time in Georgia. Employers must provide a written explanation of all payroll card fees at least 30 days before introducing the paycard system, and at the time of hiring new employees. Employees must be provided with an opt-out form with the written explanation of fees and otherwise made generally available.

What if the employee requests a paper check?

In Georgia, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Georgia, employees must be given the option to choose the financial institution to which their wages are deposited.

Payroll cards must be payable on demand at some established place of business in the United States, the name and address of which must appear on the payroll card.

What are the state regulations for payroll card fees?

Employees must be provided with a written explanation of any fees association with payroll cards.

References

(b) [Employers] shall make wage and salary payments to such employees or to their authorized representatives (1) by lawful money of the United States, (2) by check, (3) with the consent of the employee, by authorization of electronic credit transfer to his or her account with a bank, trust company, or other financial institution authorized by the United States or one of the several states to receive deposits in the United States, or (4) by credit to a payroll card account. Such payments shall be made on such dates during the month as may be decided upon by such person, firm, or corporation; provided, however, that the dates so selected shall be such that the month will be divided into at least two equal periods; and provided, further, that the payments made on each such date shall in every case correspond to the full net amount of wages or earnings due the employees for the period for which the payment is made.

(c) A person, firm, or corporation that elects pursuant to subsection (b) of this Code section to make wage and salary payments by using credit to a payroll card account shall provide the employee with each of the following:

(1) A written explanation of any fees associated with the payroll card account offered to the employee. For all employees employed on the date a person, firm, or corporation elects to make such wage and salary payments by using credit to a payroll card account, such written explanation shall be provided at least 30 days prior to the date such payroll card account is to become available. For any employee hired after the date of such election, the written explanation shall be provided at the time of hiring. A form shall be provided simultaneously with the written explanation of fees allowing employees to opt out of receiving such payments as credit to a payroll card account as provided in paragraphs (2) and (3) of this subsection. Such form shall also be made generally available to employees;

(2) The ability to opt out of receiving such payments as credit to a payroll card account by submitting in writing a request for a check; and

(3) The ability to opt out of receiving such payments as credit to a payroll card account by providing the proper designation and authorization for an electronic credit transfer. O.C.G.A. § 34-7-2.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Hawaii, provided employees consent in writing to receiving direct deposit. Consenting to this method of payment must not be a condition of employment.

Does the employee need to consent to receiving their wages on a payroll card?

In the state of Hawaii, an employer is required to collect written consent from the employee before initiating payment of wages to a payroll card. Consenting to this method of payment must not be a condition of employment. Before providing consent, employees must be provided with a description of options for receiving wages, an explanation of all fees associated with the card, and a list of services provided with the card.

An employer in the state of Hawaii must honor a written request by an employee to change the method of receiving wages from a paycard to a paper check or other depository account within two pay cycles from the time of the request.

What if the employee requests a paper check?

Employees who have opted to receive their wages on a paycard must be able to make at least three free withdrawals from the paycard, at least one of which must permit withdrawal of the full amount of the employee’s net wages on the card at a federally insured financial institution or at an in-network ATM. Employees must be able to access the balance or other account information online and via telephone twenty-four hours a day, seven days a week without charging a fee.

What are the state requirements for accessing wages?

Employees who have opted to receive their wages on a paycard must be able to make at least three free withdrawals from the paycard, at least one of which must permit withdrawal of the full amount of the employee’s net wages on the card at a federally insured financial institution or at an in-network ATM. Employees must be able to access the balance or other account information online and via telephone twenty-four hours a day, seven days a week without charging a fee.

What are the state regulations for payroll card fees?

In Hawaii, employees must be provided with the pay card fee schedule and a notice of any third-party fees in writing. The paycard program cannot charge overdraft fees or fees based on an employee’s account balance. The employee must also be provided one free replacement card per year at no cost.

References

Every employer shall pay all wages due to the employer’s employees at least twice during each calendar month, on regular paydays designated in advance by the employer, in lawful money of the United States, with checks convertible into cash on demand at full face value thereof, by direct deposit to the employee’s account at a federally insured depository institution as provided in subsection (d), or by other means as provided in section 388-5.7.  Haw. Rev. Stat. § 388-2(a).

An employer may pay wages due to the employer’s employees by direct deposit to the employee’s account at a financial institution; provided that:

(1) The employee has voluntarily authorized, in writing or via electronic signature, the direct deposit to the account and financial institution of the employee’s choice;

(2) The deposits and accounts of the financial institution selected are insured by the Federal Deposit Insurance Corporation or any other comparable federal or state agency;

(3) The employee may cancel the direct deposit at any time with reasonable notice;

(4) The employer shall provide a pay statement as required under section 388-7(4);

(5) No employee shall be required to pay any costs or fees for the direct deposit of wages into the employee’s account; and

(6) No employee may be disciplined or otherwise penalized for authorizing or refusing to authorize the direct deposit of wages. Haw. Rev. Stat. § 388-2(d).

[A]n employer shall not pay wages due to the employer’s employees by use of a pay card unless the following requirements are satisfied:

(1) The employee shall be given the option of receiving the employee’s wages by direct deposit to a depository account of the employee’s choosing, receiving payment by paper check, or receiving payment by pay card before the employee selects direct deposit, pay card, or paper check;

(2) The employer shall not mandate an employee’s use of a pay card;

(3) The employer shall not make participation in the pay card program a condition of hire or continued employment;

(4) The employee shall voluntarily authorize the payment of wages using a pay card in writing or via electronic signature, without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the pay card or pay card account;

(5) Prior to obtaining the employee’s consent, the employer shall provide the employee in writing, in plain language in at least ten-point font:

(A) A description of the employee’s options for receiving wages;

(B) The pay card fee schedule in a form that the employee may retain for the employee’s records stating the dollar amount of all fees;

(C) A notice that states whether third parties may assess additional fees relating to the use of the pay card; and

(D) A list of the services available to the employee pursuant to paragraph (8);

(6) The employer shall be responsible for fees that have been assessed against the employee outside the pay card fee schedule;

(7) The employer shall agree to honor a written request by the employee to change the method of receiving wages from a pay card to another method offered by the employer within two pay periods from the time of the request;

(8) The pay card shall provide for all of the following, at no cost to the employee:

(A) A pay card on which the employee may receive wages, with no charges for the application, initiation, transfer, loading of wages by the employer, privilege of participation, or distribution or delivery of the initial pay card;

(B) The ability during each pay period for the employee to make at least three free withdrawals from the pay card, at least one of which permits withdrawal of the full amount of the employee’s net wages on the card at a federally insured depository institution or at that institution’s affiliated automated teller machines;

(C) The means to access the balance or other account information online and via telephone offered in conjunction with the pay card in a manner that allows access to account information twenty-four hours a day, seven days a week without charging a fee;

(D) A readily accessible electronic history of the employee’s account transactions covering at least sixty days preceding the date the employee electronically accesses the account;

(E) Upon oral or written request or via electronic signature by the employee, a written history of the account transactions covering at least sixty days prior to the employee’s request;

(F) No pay card shall assess an overdraft fee or charge pursuant to the pay card issuer’s overdraft service against an employee or the employee’s account; and

(G) The ability to close a pay card account and obtain payment of the balance remaining on the card;

(9) The pay card shall not impose fees based on an employee’s account balance;

(10) The employer shall ensure that the pay card account provides one free replacement pay card per year at no cost to the employee at least fifteen days before the pay card’s expiration date; provided that the replacement pay card need not be issued if the pay card has been inactive for a period of not less than twelve months or the employee is no longer employed by the employer;…

(12) The funds in the pay card account shall not expire. The pay card account may be closed after six continuous months of inactivity, with reasonable notice to the employee; provided that the remaining funds in the pay card account shall be refunded to the employee at no cost to the employee. Haw. Rev. Stat. § 388-5.7.

Every employer shall…[f]urnish each employee at every payday a legible printed, typewritten, or handwritten record showing the employee’s total gross compensation, the amount and purpose of each deduction, total net compensation, date of payment, and pay period covered. Haw. Rev. Stat. § 388-7(4).

Can you require an employee to receive wages via direct deposit?

Wages must be paid in cash, by check, or by direct deposit. Employers in the state of Idaho cannot require an employee to receive their wages by direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

In the state of Idaho, an employee must voluntarily consent to receiving their wages by direct deposit. The employee must also be allowed to revoke this authorization and elect a different method for receiving their wages.

What if the employee requests a paper check?

An employee in Idaho may revoke their previous authorization to receive their wages by direct deposit and elect to receive their wages by check. Employers that pay their employees by check must provide for check cashing, without charge, at a bank or elsewhere.

What are the state requirements for accessing wages?

In Idaho, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

The Idaho statutes and regulations do not expressly address the payment of wages by direct deposit or paycard.

References

Employers shall pay all wages due to their employees at least once during each calendar month, on regular paydays designated in advance by the employer, in lawful money of the United States or with checks on banks where suitable arrangements are made for the cashing of such checks without charge to the employee. Nothing contained herein shall prohibit an employer from depositing wages due or to become due or an advance of wages to be earned in an account in a bank, savings and loan association or credit union of the employee’s choice, provided that the employee has voluntarily authorized such deposit. If the employee revokes such authorization for deposit, it shall be deemed terminated and the provisions herein relating to the payment of wages shall apply. Idaho Stat. § 45-608(1).

From previous conversations with the Idaho Department of Labor (May 10, 2016), employees receiving payroll cards must be provided the full amount of their wages on each regular pay day and be provided the ability to access their full net wages from the payroll card account each pay period without cost.

Can you require an employee to receive wages via direct deposit?

In Illinois, an employer may not require an employee to receive wages via direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Yes. Employers must obtain written employee consent to receiving their wages on a payroll card, provide an itemized fee schedule, and explain third party (ATM) fees.

What if the employee requests a paper check?

In Illinois, an employer must provide a paper check if the employee so requests.

What are the state requirements for accessing wages?

Illinois regulations state that the employee must be able to make an initial withdrawal of the entire net wages at least once every two weeks.

What are the state regulations for payroll card fees?

Illinois regulations state that employees must be provided one free paper statement per month, two free declined transactions per month and free phone balance inquiries. In addition, inactivity fees must not take effect until there has been at least one year of inactivity. Employers may not use a payroll card program that charges fees for point of sale transactions, the application, initiation, loading of wages by the employer, or participation in the payroll card program.

References

All wages and final compensation shall be paid in lawful money of the United States, by check, redeemable upon demand and without discount at a bank or other financial institution readily available to the employee, by deposit of funds in an account in a bank or other financial institution designated by the employee, or by a payroll card that meets the requirements of Section 14.5. No employer may designate a particular financial institution, bank, savings bank, savings and loan, or currency exchange for the exclusive payment or deposit of a check for wages. 820 ILCS 115/4.

An employer using a payroll card to pay an employee’s wages shall meet the following requirements:

1)     The employer shall not make receipt of wages by payroll card a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee.

2)     The employer shall not initiate payment of wages to the employee by electronic fund transfer to a payroll card account unless:

a)     the employer provides the employee with a clear and conspicuous written disclosure notifying the employee that payment by payroll card is voluntary, listing the other method or methods of payment offered by the employer in accordance with Section 4, and explaining the terms and conditions of the payroll card account option, including:

 i. an itemized list of all fees that may be deducted from the employee’s payroll card account by the employer or payroll card issuer;

 ii. a notice that third parties may assess transaction fees in addition to the fees assessed by the employee’s payroll card issuer; and

 iii. an explanation of how the employee may obtain, at no cost, the employee’s net wages, check the account balance, and request to receive paper or electronic transaction histories, as provided in item (3);

b)     the employer also offers the employee another method or methods of payment in compliance with Section 4; and

c)     the employer obtains the employee’s voluntary written or electronic consent to receive the wages by payroll card.

3)     A payroll card program offered by the employer shall provide the employee with:

a)     at least one method of withdrawing the employee’s full net wages from the payroll card once per pay period, but not less than twice per month, at no cost to the employee, at a location readily available to the employee;

b)     at the employee’s request, one transaction history, which the employee may request to receive in paper or electronic form, each month that includes all deposits, withdrawals, deductions, or charges by any entity from or to the employee’s payroll card account at no cost to the employee; and

c)     unlimited telephone access to obtain the payroll card account balance on the payroll card at any time without incurring a fee.

4)     An employer may not use a payroll card program that charges fees for point of sale transactions, the application, initiation, loading of wages by the employer, or participation in the payroll card program. Fees for account inactivity may be assessed following one year of inactivity. The payroll card program must offer the employee a declined transaction, at no cost to the employee, twice per month. Commercially reasonable fees, limited to cover the costs to process declined transactions, may be assessed on subsequent declined transactions within that particular month.

5)     The payroll card or payroll card account may not be linked to any form of credit including, but not limited to, overdraft fees or overdraft service fees, a loan against future pay, or a cash advance on future pay or work not yet performed.

6)     An employee paid wages by payroll card may request to be paid wages by another method of payment provided by the employer in accordance with Section 4. Following the request, the employer shall, within 2 pay periods, begin payment to the employee by the allowable method requested by the employee. 810 ILCS 115/14.5.

All wages owed to an employee shall be paid at the discretion of the employer, in lawful money of the United States, by a check redeemable only upon demand and without discount at a bank or other financial institution readily available to the employee, or at the discretion of the employee, by an employee’s voluntary acceptance of direct deposit of funds in any bank or other financial institution designated by the employee, or by an employee’s voluntary acceptance of a payroll card…An employer is not permitted to offer employees only the choice between two voluntary methods of payment. Because payment by either payroll card or direct deposit must be voluntary, an employer offering either or both of these payment methods must also provide an additional choice of payment by cash or check. 56 Ill. Admin. Code § 300.600(a).

Notwithstanding the method of payment, the employer must provide the employee with a written receipt that shows hours worked, rate of pay, overtime pay and overtime hours, gross wages, an itemization of all deductions, wages and deductions year to date. When an employer offers to any of its employees alternative options for receipt of payment of wages, all employees must be afforded the same options. When an employer elects to pay employees in cash, the employer must obtain signed receipts from the employee indicating date of payment and amount received. 56 Ill. Admin. Code § 300.600(a).

Can you require an employee to receive wages via direct deposit?

Yes, so long as the employee may choose the financial institution where their direct deposit is sent.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in Indiana, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

In Indiana, employers are not obligated to provide paper checks and may mandate direct deposit.

What are the state requirements for accessing wages?

In Indiana, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

No applicable statute.

References

Every corporation, limited liability company, association, company, firm, or person engaged in Indiana in mining coal, ore, or other mineral, quarrying stone, or in manufacturing iron, steel, lumber, staves, heading barrels, brick, tile, machinery, agricultural or mechanical implements, or any article of merchandise shall pay each employee of the corporation, limited liability company, company, association, firm, or person, if demanded, at least every two (2) weeks, the amount due the employee for labor. The payments shall be made in lawful money of the United States, by negotiable check, draft, or money order, or by electronic transfer to the financial institution designated by the employee. Ind. Code § 22-2-4-1(b).

Every person, firm, corporation, limited liability company, or association, their trustees, lessees, or receivers appointed by any court, doing business in Indiana, shall pay each employee at least semimonthly or biweekly, if requested, the amount due the employee.The payment shall be made in lawful money of the United States, by negotiable check, draft, or money order, or by electronic transfer to the financial institution designated by the employee. Ind. Code § 22-2-5-1(a).

Q: Can an employer require an electronic direct deposit?

A: Yes. Indiana Code § 22-2-5-1(a) states, “Every person, firm, corporation, limited liability company, or association, their trustees, lessees, or receivers appointed by any court, doing business in Indiana, shall pay each employee at least semimonthly or biweekly, if requested, the amount due the employee. The payment shall be made in lawful money of the United States, by negotiable check, draft, or money order, or by electronic transfer to the financial institution designated by the employee. Any contract in violation of this subsection is void.” Indiana Department of Labor, Wage and Hour FAQs, located at https://www.in.gov/dol/2345.htm.

Can you require an employee to receive wages via direct deposit?

Employers cannot require an employee to receive wages via direct deposit in Iowa. An employer may activate direct deposit only if the employee provides written consent.

Does the employee need to consent to receiving their wages on a payroll card?

Yes. Iowa is an opt-in state, which means the employee must give written consent to receive their wages on a payroll card.

What if the employee requests a paper check?

In Iowa, an employer must be able to pay wages by cash, check or direct deposit.

What are the state requirements for accessing wages?

Iowa regulations state that the employee must be able to make an initial withdrawal of the entire net wages at no cost.

Employers in Iowa must offer a pay stub which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

There are no Iowa-specific regulations regarding paycards, aside from the above wage withdrawal requirements order-alt:

References

[Wages] shall be paid in United States currency or by written instrument issued by the employer and negotiable on demand at full face value for such currency, unless the employee has agreed in writing to receive a part of or all wages in kind or in other form. Iowa Code § 91A(2).

[Wages] shall be paid at the employee’s normal place of employment during normal employment hours or at a place and hour mutually agreed upon by the employer and employee, or the employee may elect to have the wages sent for direct deposit, on or by the regular payday of the employee, into a financial institution designated by the employee. Upon written request by the employee, wages due may be sent to the employee by mail. The employer shall maintain a copy of the request for as long as it is effective and for at least two years thereafter. An employee hired on or after July 1, 2005, may be required, as a condition of employment, to participate in direct deposit of the employee’s wages in a financial institution of the employee’s choice unless any of the following conditions exist:

(1)   The costs to the employee of establishing and maintaining an account for purposes of the direct deposit would effectively reduce the employee’s wages to a level below the minimum wage provided under section 91D.1.

(2)   The employee would incur fees charged to the employee’s account as a result of the direct deposit.

(3)   The provisions of a collective bargaining agreement mutually agreed upon by the employer and the employee organization prohibit the employer from requiring an employee to sign up for direct deposit as a condition of hire. Iowa Code § 91A(3)(a).

Can my employer require me to have direct deposit of my wages?

Your employer may require direct deposit of your wages if:

·         You were hired after July 1, 2005

·         You are allowed to choose the bank or credit union

·         The costs of opening and keeping the account do not drop your pay below minimum wage

·         There is no charge to your account for the direct deposit

·         You are not covered by a union contract that prohibits mandatory direct deposit. Iowa Workforce Development, Wage Frequently Asked Questions, available at https://www.iowadivisionoflabor.gov/wage-frequently-asked-questions

Is payment of wages by debit card allowed in Iowa?

Yes, if the following conditions are met:

·         The employee agrees in writing to accept wages through a debit card.

·         The funds are available to the employee on or before each pay day.

·         The employee is allowed access to all wages due without a fee or charge. The number of free transactions required per pay period will vary depending on the amount of pay owed and the card’s transaction limit. For example, if the card’s transaction limit is greater than the amount of pay owed, only one free transaction per pay period is required; if the card’s transaction limit is one-half of the wages owed, two free transactions per pay period are required. Iowa Workforce Development, Wage Frequently Asked Questions, available at https://www.iowadivisionoflabor.gov/wage-frequently-asked-questions

Can you require an employee to receive wages via direct deposit?

In Kansas, an employer may not require an employee to receive wages via direct deposit. The employee must be able to choose the financial institution where their direct deposit is sent. Employers must provide an alternative payment method as a default option for employees do not designate a financial institution account for deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employee consent is not a requirement, but no less than 30 days prior to implementing a payroll card program; employers must provide a forum or educational information to employees on the program.

What if the employee requests a paper check?

Employers are not required to provide paper checks.

What are the state requirements for accessing wages?

In Kansas, employees must be given the option to choose the financial institution to which their wages are deposited.

In Kansas, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

In Kansas, employers may not charge the employee any fees for adding funds to their payroll card via ACH direct deposit, including initiation fees, participation fees or loading fees.

In Kansas, employees cannot be charged activation or initiation fees for participating in the payroll card program.

References

The employer may designate the method by which employees receive wages, provided all wages shall be paid by one or more of the following methods:

(1)   In lawful money of the United States;

(2)   by check or draft which is negotiable in the community wherein the place of employment is located;

(3)   by electronic fund transfer or deposit to an automated clearinghouse member financial institution account designated by the employee; or

(4)   by payroll card. Kansas Stat. § 44-314(b).

Any employer that elects to pay wages only by a method authorized in subsection (b)(3) shall offer an alternative payment method as a default option for employees that fail to designate a financial institution account for electronic fund transfer or deposit. Kansas Stat. § 44-314(c).

Any employer that elects to pay wages using a payroll card as authorized in subsection (b)(4) shall allow employees at least one means of fund access withdrawal per pay period at no cost to the employee for an amount up to and including the total amount of the employee’s net wages, as stated on the employee’s earnings statement. Kansas Stat. § 44-314(d).

Not less than 30 days prior to implementing a payroll program using only the methods authorized in subsection (b)(3) or (b)(4), an employer shall either:

(1)   Conduct one or more employee forums to educate employees regarding the use of a direct deposit or payroll card program offered by the employer; or

(2)   distribute educational information to employees about direct deposits or payroll cards as they may be used under the payroll card program offered by the employer. Kansas Stat. § 44-314(e).

Employers shall retain no interest in wages paid by electronic funds transferred to an employee’s payroll card account, other than the right to correct inadvertent overpayments in accordance with the rules governing direct deposit. Kansas Stat. § 44-314(f)(1).

An employer may not charge an employee initiation, loading or other participation fees to receive wages payable in an electronic fund transfer to a payroll card account, with the exception of the cost required to replace a lost, stolen or damaged payroll card. Kansas Stat. § 44-314(f)(2).

Can you require an employee to receive wages via direct deposit?

Employers can authorize deployment of direct deposit for employees.

Does the employee need to consent to receiving their wages on a payroll card?

Not specified.

What if the employee requests a paper check?

Employers can pay employees by cash, check, direct deposit and payroll card; however, employers are not required to pay employees via check.

What are the state requirements for accessing wages?

Employees must have the ability to withdrawal the entire amount of the paycheck without deduction and without paying a fee.

What are the state regulations for payroll card fees?

Employees may not be charged an activation fee and the payroll card must provide the employee with the ability to make at least one withdrawal per pay period for any amount without charge, up to and including the full account balance, at no cost to the employee.

References

The wages shall be payable in legal tender of the United States, checks on banks, direct deposits, or payroll card accounts convertible into cash on demand at full face value, subject to the allowances made in this chapter. However, an employee may not be charged an activation fee and the payroll card account shall provide the employee with the ability, without charge, to make at least one (1) withdrawal per pay period for any amount up to and including the full account balance. Ky. Rev. Stat. § 010(1)(c).

May my employer require direct deposit for every employee?

Your employer can require direct deposit so long as you have the ability to withdraw your entire net pay without having to pay a fee to the financial institution. Kentucky Labor Cabinet, Frequently Asked Questions, available at https://labor.ky.gov/answers/Pages/default.aspx.

Can you require an employee to receive wages via direct deposit?

In Louisiana, employers can authorize full deployment of direct deposit for employees as long as employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Louisiana has no specific paycard legislation.

What if the employee requests a paper check?

Employers are not required to provide paper checks in Louisiana.

What are the state requirements for accessing wages?

Louisiana has no specific paycard legislation.

What are the state regulations for payroll card fees?

Louisiana has no specific paycard legislation, but legislation around direct deposit requires that employees are not subject to deposit-related fees.

References

No applicable statute.

http://smallbusiness.chron.com/payroll-direct-deposit-laws-43644.html

https://www.payrollexpress.com/louisiana-payroll-services

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Maine, provided employees may choose to use other means for payment of wages and employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Maine has no specific paycard legislation.

What if the employee requests a paper check?

Employers in Maine are not required to provide wage payment by paper check.

What are the state requirements for accessing wages?

Maine regulations state that the employee must be able to make an initial withdrawal of the entire net wages at no cost or be able to choose another means of receiving wages which does not involve any cost to the employee.

What are the state regulations for payroll card fees?

Maine regulations state that the employee must be able to make an initial withdrawal of the entire net wages at no cost or be able to choose another means of receiving wages which does not involve any cost to the employee.

References

“Wages” paid to any employee includes compensation paid to the employee in the form of legal tender of the United States and checks on banks convertible into cash on demand and includes the reasonable cost to the employer who furnishes the employee board or lodging. “Wages” also includes compensation paid through a direct deposit system, automated teller machine card or other means of electronic transfer as long as the employee either can make an initial withdrawal of the entire net pay without additional cost to the employee or the employee can choose another means of payment that involves no additional cost to the employee. 26 Maine Rev. Stat. § 663(5).

Can you require an employee to receive wages via direct deposit?

Wages must be paid in cash or by a check that may be cashed, without discount, at a bank or other financial institution that is readily available to the employee. In the private sector, employers cannot require direct deposit, but wages may be paid by direct deposit if the employee authorizes it. State employees hired before the effective date of regulations on direct deposit may not be required to accept direct deposit. Also, employees may request an exemption from direct deposit, and all newly hired employees must be notified of the right to request an exemption to direct deposit rules.

Does the employee need to consent to receiving their wages on a payroll card?

With the employee’s authorization, an employer may pay the employee via a payroll debit card provided that any fees applicable to the debit card are disclosed in at least 12–point font.

What if the employee requests a paper check?

Maryland payroll laws state that, employers cannot require direct deposit. With that said, if an employee requests to be paid via paper check, the employer must comply.

What are the state requirements for accessing wages?

Wages must be paid in cash or by a check that may be cashed, without discount, at a bank or other financial institution that is readily available to the employee.

What are the state regulations for payroll card fees?

Any fees applicable to the debit card must be disclosed in at least 12–point font.

References

Each employer shall pay a wage:

(1)    in United States currency; or

(2)    by a check that, on demand, is convertible at face value into United States currency. Md. Lab. & Empl. Code § 3-502(c).

An employer may not print or cause to be printed an employee’s Social Security number on the employee’s wage payment check, an attachment to an employee’s wage payment check, a notice of direct deposit of an employee’s wage, or a notice of credit of an employee’s wage to a debit card or card account. Md. Lab. & Empl. Code § 3-502(d)(2).

This section does not prohibit the:

(1)    direct deposit of the wage of an employee into a personal bank account of the employee in accordance with an authorization of the employee; or

(2)    credit of the wage of an employee to a debit card or card account from which the employee is able to access the funds through withdrawal, purchase, or transfer if:

(i)     authorized by the employee; and

(ii)    any fees applicable to the debit card or card account are disclosed to the employee in writing in at least 12 point font. Md. Lab. & Empl. Code § 3-502(e).

Can you require an employee to receive wages via direct deposit?

Employers may require employees to receive wages via direct deposit provided that the employees may choose the financial institution to which their direct deposit is sent.

Does the employee need to consent to receiving their wages on a payroll card?

Employers may utilize payroll cards in Massachusetts, provided employees are provided free means of access to the entire amount of net pay at least once per pay period and may choose to revert to direct deposit at a financial institution of their choosing. Employees must be able to receive their entire wages without charge at a location within a reasonable distance from the workplace.

What if the employee requests a paper check?

There is no formal law in Massachusetts stating that an employer must pay their employees via paper check should they request it.

What are the state requirements for accessing wages?

In Massachusetts, employees must be given the option to choose the financial institution to which their wages are deposited.

In Massachusetts, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

Fees that may be incurred after the initial transaction should be disclosed to employees.

References

An employer, when paying an employee his wage, shall furnish to such employee a suitable pay slip, check stub or envelope showing the name of the employer, the name of the employee, the day, month, year, number of hours worked, and hourly rate, and the amounts of deductions or increases made for the pay period. Mass. Gen. Law ch. 149, § 148.

Any employer paying wages to an employee by check or draft shall provide for such employee such facilities for the cashing of such check or draft at a bank or elsewhere, without charge by deduction from the face amount thereof or otherwise, as shall be deemed by the attorney general to be reasonable. Mass. Gen. Law ch. 149, § 148.

An employer (including a financial institution) may not require its employees to receive their salary by direct deposit to any particular institution. An employer may require direct deposit of salary by electronic means if employees are allowed to choose the institution that will receive the direct deposit. Alternatively, an employer may give employees the choice of having their salary deposited at a particular institution (designated by the employer) or receiving their salary by another means, such as by check or cash. See 66 FR 15192, March 16, 2001; Mass. Div. of Banks, Op. Letters No. 04-041.

It is the position of the Division that an employer may require direct deposit of salary by electronic means if employees are allowed to choose the institution that will receive the direct deposit. Mass. Div. of Banks, Op. Letters No. 00-148.

Agency Enforcement Position

 Payment of wages by debit card is permissible provided:

1. Employees are able to access all of their wages on payday (e.g., employees are allowed at least one payroll card transaction each pay period without fees),

2. Fees that may be incurred after the initial transaction should be disclosed to employees.

Office of the Massachusetts Attorney General, Fair Labor and Business Practices; confirmed through telephone conference May 12, 2016.

In a 2007 letter, the Agency stated that employers may give employees the choice between direct deposit and payroll cards, if:

1. Employees who choose payment by payroll card have the choice of reverting to direct deposit at a financial institution of their choosing,

2. Employees are able to receive their entire wages without charge at a location within a reasonable distance from the workplace.

Office of the Massachusetts Attorney General, Fair Labor and Business Practices; Letter dated December 21, 2007.

(Note: The Attorney General does not have the authority to issue opinion letters to private individuals. It provided the above comments for informational purposes only, not as a formal opinion).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Michigan, provided employees consent in writing to receiving direct deposit and such consent is obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to permit the deposit. Employees must be provided with a written form that allows the employee the option to receive wages either by direct deposit to the employee’s account at a financial institution or through a payroll debit card and with a statement indicating that failure to return the form within 30 days with the account information necessary to implement direct deposit will be presumed to indicate consent to receiving wages through a payroll debit card.

Does the employee need to consent to receiving their wages on a payroll card?

In Michigan, employees must consent in writing to receiving their wages on a payroll card. Employees must be provided with a written consent form and a statement indicating that failure to return the form within 30 days with account information for direct deposit will indicate consent for the payroll card.

What if the employee requests a paper check?

Michigan wage payment law states that an employee may request a change in the method of receiving wages at any time. The employer shall take no longer than 1 pay period to implement the change after the employer receives the request and any information necessary to implement the request.

What are the state requirements for accessing wages?

Employers must provide a written disclosure that includes methods for accessing wages without charge, the method to obtain free balance inquiries, and a notice that employees may change the method of receiving wages at any time.

What are the state regulations for payroll card fees?

Employers must provide a written disclosure that includes the terms and conditions and fees related to the card (including itemized list of any fees), a statement that the card issuer and out of network ATMs may impose charges, the method to obtain free balance inquiries, a notice that employees may change the method of receiving wages at any time, and that the payroll card does not provide access to a savings or checking account.

References

An employer or agent of an employer may pay wages to an employee by any of the following methods that protect the earnings of the employee from garnishment as required by 15 USC 1673 to the same extent they would be exempt while held by the employer:

(a)   Payment in United States currency.

(b)   Payment by a negotiable check or draft payable on presentation at a financial institution or other established place of business without discount in United States currency.

(c)    Direct deposit or electronic transfer to the employee’s account at a financial institution.

(d)   Issuing a payroll debit card that complies with subsection (6). MCLS § 408.476(1).

[A]n employer or agent of an employer shall not deposit an employee’s wages in a bank, credit union, or savings and loan association without the full, free, and written consent of the employee, obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to permit the deposit. MCLS § 408.476(2).

Except as provided in subsection (4), an employer or agent of an employer shall not issue a payroll debit card to an employee under subsection (1)(d) without the full, free, and written consent of the employee, obtained without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the payroll debit card. MCLS § 408.476(3).

An employer or agent of an employer may require employees to receive wages only through direct deposit or a payroll debit card that complies with subsection (6) if the employer has provided the employee with all of the following:

(a)   A written form that allows the employee the option to receive wages either by direct deposit to the employee’s account at a financial institution or through a payroll debit card.

(b)   A statement indicating that, except for an employee currently paid by direct deposit or any employee of an employer paying wages by payroll debit card to 1 or more of its employees on January 1, 2005, failure to return the form within 30 days with the account information necessary to implement direct deposit will be presumed to indicate consent to receiving wages through a payroll debit card. If an employee is currently paid by direct deposit, the method of payment shall not be changed to payroll debit card without written consent of the employee.

(c)    Written disclosure of all of the following concerning the payroll debit card:

(i) The terms and conditions for use, including an itemized list of any and all fees.

(ii) The methods for accessing wages without charge.

(iii) A statement that, if the payroll debit card is used outside of the specified network of automatic teller machines, both the payroll card issuer and the operator of the automatic teller machine may impose charges.

(iv) The methods to obtain free balance inquiries.

(v) The employee’s right to elect to change the method of receiving wages at any time, as provided in subsection (5).

(vi) That the payroll debit card does not provide access to a savings or checking account. MCLS § 408.476(4).

 An employee may request a change in the method of receiving wages established under subsection (4) at any time. The employer shall take no longer than 1 pay period to implement the change after the employer receives the request and any information necessary to implement the request. An employer shall allow an employee to select payment by direct deposit or electronic transfer under subsection (4) freely, without intimidation, coercion, or fear of discharge or reprisal for the choice. MCLS § 408.476(5).

An employer shall not pay wages by issuing a payroll debit card unless the payroll debit card has all of the following characteristics:

(a)   Entitles the employee to make at least 1 withdrawal or transfer without charge each pay period, but not more frequently than once per week, for any amount the employee elects up to the balance accessible through the card.

(b)   Allows no changes in fees or terms of service unless the employee has received a written notice at least 21 days in advance of the date that the changes take effect identifying the changes.

(c)    Provides a method for the employee to make an unlimited number of balance inquiries without charge, either electronically or by telephone.

(d)   Is not linked to any form of credit, including a loan against future pay or a cash advance on future pay. MCLS § 408.476(6).

An employer shall not require an employee to pay any fees or costs incurred by the employer in connection with paying wages or establishing a process for paying wages by a method described in subsection (1)(c) or (d). MCLS § 408.476(7).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Minnesota, provided employees can provide written objection.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Minnesota.

Consenting to this method of payment must not be a condition of employment. The written consent signed by the employee must include the terms and conditions of the payroll card account.

What if the employee requests a paper check?

A request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Minnesota, an employee who chooses to be paid by direct deposit to a payroll card must be permitted to withdraw an amount up to and including the total amount of the employee’s entire net pay, at least once per pay cycle, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

The employer cannot charge the employee any fees for adding funds to their payroll card via ACH direct deposit, including initiation fees, participation fees or loading fees.

References

“Wage” means compensation due to an employee by reason of employment, payable in:

(1) legal tender of the United States;

(2) check on banks convertible into cash on demand at full face value;

(3) except for instances of written objection to the employer by the employee, direct deposit to the employee’s choice of demand deposit account; or

(4) an electronic fund transfer to a payroll card account that meets all of the requirements of section 177.255, subject to allowances permitted by rules of the department under section 177.28. Minn. Stat. § 177.23(4).

An employee who chooses to be paid wages by electronic fund transfer to a payroll card account must be permitted to withdraw by a free transaction from the employee’s payroll card account, an amount up to and including the total amount of the employee’s entire net pay, as stated on the employee’s earnings statement. The free transaction must be available to the employee on and after the employee’s regular payday. Minn. Stat. § 177.255(4).

When offering an employee the option of being paid wages by electronic fund transfer to a payroll card account, the employer shall provide to the employee written disclosure in plain language of all the employee’s wage payment options. The written disclosure shall state the terms and conditions of the payroll card account option, including, but not limited to, the requirements set forth in this section and a complete itemized list of all fees that may be deducted from the employee’s payroll card account by the employer or card issuer. The disclosure must also state that third parties may assess transaction fees in addition to the fees assessed by the employee’s payroll card issuer or issuers. For fees that may be deducted or charged by the employer or payroll card issuer, the dollar amount of each fee must be stated. A copy of the written disclosure must be provided to the employee. Minn. Stat. § 177.255(5).

The employer may initiate payment of wages to an employee by electronic fund transfer to a payroll card account only after the employee has voluntarily consented in writing to that method of payment. Consent to payment of wages by electronic fund transfer to a payroll card account shall not be a condition of hire or of continued employment. The written consent signed by the employee must include the terms and conditions of the payroll card account option as provided in subdivision 5. A copy of the signed written consent must be provided to the employee and be retained by the employer. Minn. Stat. § 177.255(6).

The employer shall provide to the employee, upon the employee’s written or oral request, one free transaction history each month that includes all deposits, withdrawals, deductions, or charges by any entity from or to the employee’s payroll card account. Minn. Stat. § 177.255(7).

An employee who is being paid wages by electronic fund transfer to a payroll card account may request to be paid wages by another method that is allowed by law. Upon the employee’s request to change the wage payment method, the employer shall provide a form on which the employee shall indicate the change. The employer shall, within 14 days of the employee’s request, begin payment by a different allowable method. Minn. Stat. § 177.255(11).

An employer may not charge an employee initiation, participation, loading, or other fees to receive wages payable in an electronic fund transfer to a payroll card account. Minn. Stat. § 177.255(12).

Fees imposed by the employer or payroll card issuer that were not disclosed to the employee shall not be deducted from the employee’s payroll card account or charged to the employee. Inactivity or dormancy fees shall not be deducted from an employee’s payroll card account or charged to the employee. Minn. Stat. § 177.255(13).

Can you require an employee to receive wages via direct deposit?

Mississippi has no laws regulating the payment of wages via payroll card or direct deposit. Because there is no Mississippi-specific regulation, employers should defer to the federal regulations regarding direct deposit. Federal law allows employers to make direct deposit mandatory provided one of the two following conditions are met:

·         The employee must be able to choose the financial institution where their direct deposit is sent

·         If the employer requires that all employees’ direct deposits are sent to a specific financial institution, another method of payment (paper check) must be offered

Therefore, employers cannot require that all employees receive their wages on a paycard without allowing employees to receive their wages at a bank of their choice. However, employers can require that all employees enroll in direct deposit, and make paycards available for employees who don’t have or don’t want to use a bank account for direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

There are no specific regulations in Mississippi regarding employee consent to wage payment method.

What if the employee requests a paper check?

No applicable statute.

What are the state requirements for accessing wages?

In Mississippi, there are no state requirements regarding accessing wages.

What are the state regulations for payroll card fees?

There are no state regulations regarding payroll card fees in Mississippi.

References

No applicable statute.

Can you require an employee to receive wages via direct deposit?

Missouri has no laws regulating the payment of wages via payroll card or direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

There are no specific regulations in Missouri regarding employee consent to wage payment method.

What if the employee requests a paper check?

No applicable statute.

What are the state requirements for accessing wages?

In Missouri, there are no state requirements regarding accessing wages.

What are the state regulations for payroll card fees?

There are no state regulations regarding payroll card fees in Missouri.

References

Such corporations and persons either as a part of the check, draft or other voucher paying the wages or separately, shall furnish the employee at least once a month a statement showing the total amount of deductions for the period. Mo. Rev. Stat. § 290.080.

“Wage”, compensation due to an employee by reason of his employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value. Mo. Rev. Stat. § 290.500.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Montana, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Montana.

What if the employee requests a paper check?

In Montana, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Montana, employees must be able to access the full amount of the wages, in cash, without incurring a fee in the initial withdrawal. Employers must provide an itemized list of any deductions and authorized withholdings from the wages. Employees must have access to a bank teller withdrawal.

What are the state regulations for payroll card fees?

Employees must be provided with a written explanation of any fees association with payroll cards.

References

Except as provided in subsections (2) and (3), every employer of labor in the state of Montana shall pay to each employee the wages earned by the employee in lawful money of the United States or checks on banks convertible into cash on demand at the full face value of the checks. Mont. Code § 39-3-204(1).

Wages may be paid to the employee by electronic funds transfer or similar means of direct deposit if the employee has consented in writing or electronically, if a record is retained, to be paid in this manner. However, an employee may not be required to use electronic funds transfer or similar means of direct deposit as a method for payment of wages. Mont. Code § 39-3-204(2).

1)  What is an electronic wage payment?

An electronic wage payment is either:

(a) an electronic funds transfer (“direct deposit”) into the employee’s financial institution (a bank or credit union) account with the employee’s pay; or

(b) a debit card (“pay card”) issued to the employee, and which the employer deposits the amount of the employee’s pay.

2)  May employers pay wages in Montana using electronic funds transfers?

Employers may offer employees the option of electronic direct deposit of wages, but may not require that an employee select a form of electronic transfer of funds. The employer needs the voluntary consent of the employee to provide electronic funds transfers The consent may either be in writing or via an electronic means.The employer should be sure to keep a record of that consent.Electronic payment of wages is an “opt in” proposition in Montana, not an “opt out” where an employee has to affirmatively take steps to prevent electronic payment of wages.

3)  May an employer use a debit card (a “pay card”) to pay wages?

Yes, if all of the following conditions are met:

(a) the employee has the option to receive the full amount of the wages via a check (or cash, if the employer prefers), without requiring the employee take extraordinary steps to obtain the check;

(b) the employee consents to the use of the debit card;

(c) the employer provides a clear understandable guideline identifying the charges associated with the use of the debit card;

(d) the full amount of the wages can be accessed, in cash, without incurring a fee in the initial withdrawal; and

(e) the employee receives (either in writing or electronically) an itemized list of the deductions and authorized withholdings from the wages.

4)  Does an employer comply with Montana law if the employer offers employees a choice between receiving wages either via an electronic funds transfer to a financial institution account or via a debit card?

No.  An employer cannot force an employee into accepting an electronic payment of wages.

6)  Are debit cards that are honored only at ATMs (automatic teller machines) an allowed form of wage payment in Montana?

No, unless the ATM can disburse the full amount of the wages in a single, no-fee withdrawal.  Because ATMs do not dispense odd amounts (no coins, no one dollar bills, etc.), an employer would have to “round up” the amount of the wages so that the full amount of the wages could be disbursed by the ATM.

7)  Does Montana have a requirement that if it offers debit cards as a wage payment option, there be a no-fee ATM within a certain maximum distance from the employee’s usual workplace?

No. Montana law has not established a geographical proximity requirement for ATM access.  Montana allows employees the freedom to choose whether a debit card is a suitable way to receive wages without regards to machine access. Employees who do not have a reasonably convenient way to access their wages are not likely to choose to use an electronic payment system such as a debit card.

8)  Can an employer use a wage payment method that imposes a fee or forfeiture if the employee does not cash, withdraw, or otherwise transfer the wages in a certain amount of time?

No. Montana law does not authorize an employer to assess a fee or impose a forfeiture of wages simply because of a delay in the employee trying to obtain the funds.

9)  If an employee decides not to withdraw or transfer the full amount of wages in an initial transaction, may the bank or debit card issuer impose a fee for subsequent transactions?

Yes. The amount of the per-transaction fee(s) should be disclosed to the employee at the time the employee authorized use of the electronic funds transfer.The failure to make an appropriate disclosure of fees may invalidate the employee’s consent to participate in electronic fund transfers.

12)  If an employee agrees to receive electronic wage payments, can the employee change her or his mind at a later date and go back to receiving a regular [non-electronic] paycheck?

Yes. An employer must honor the change as promptly as is feasible, although it may take one or two pay cycles before the change becomes effective. Montana Department of Labor and Industry, Electronic Wage Payments FAQs, available at http://erd.dli.mt.gov/labor-standards/wage-and-hour-payment-act/electronic-wage-payment-faq.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Nebraska, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Employees can revoke consent to receiving their wages via paycard at any time in Nebraska.

What if the employee requests a paper check?

In Nebraska, employers are not obligated to provide paper checks.

What are the state requirements for accessing wages?

In Nebraska, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

In Nebraska, employees cannot be charged a fee for receiving wages by electronic means.

What are the state regulations for payroll card fees?

In Nebraska, employees cannot be charged a fee for receiving wages by electronic means.

References

Payroll debit card means a stored-value card issued by or on behalf of a federally insured financial institution that provides an employee with immediate access for withdrawal or transfer of his or her wages through a network of automatic teller machines. Payroll debit card includes payroll debit cards, payroll cards, and paycards. Neb. Rev. Stat. § 48-1229(5).

When an employer elects to pay wages with a payroll debit card, the employer shall comply with the compulsory-use requirements prescribed in 15 U.S.C. 1693k. Additionally, the employer shall allow an employee at least one means of fund access withdrawal per pay period, but not more frequently than once per week, at no cost to the employee for an amount up to and including the total amount of the employee’s net wages, as stated on the employee’s earnings statement. An employer shall not require an employee to pay any fees or costs incurred by the employer in connection with paying wages with a payroll debit card. Neb. Rev. Stat. § 48-1230(3).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Nevada, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Nevada.

What if the employee requests a paper check?

In Nevada, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Nevada, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

Wages must be easily and readily accessible to the employee and there must be no unreasonable fees or conditions associated with payroll cards that burden the employee.

What are the state regulations for payroll card fees?

Any fees or other charges must be disclosed to and subject to the written consent of employees.

References

The payment of wages or compensation must be made in lawful money of the United States or by a good and valuable negotiable check or draft drawn only to the order of the employee unless:

1.  The employee has agreed in writing to some other disposition of his or her wages; or

2.  The employer has been directed to make some other disposition of the employee’s wages by:

(a)  A court of competent jurisdiction; or

(b)  An agency of federal, state or local government with jurisdiction to issue such directives.

Such checks or drafts must be payable on presentation thereof at some bank, credit union or established place of business without discount in lawful money of the United States. They must be payable at the place designated in the notice prescribed in NRS 608.080. Nev. Rev. Stat. Ann. § 608.120.

An employer may use an electronic payment system, including, but not limited to, a direct deposit, debit card or similar payment system, as an alternative location of payment if:

(a)  The employee can obtain immediate payment in full;

(b)  The employee receives at least one free transaction per pay period and any fees or other charges are prominently disclosed to and subject to the written consent of the employee;

(c)  The alternative location of payment is easily and readily accessible to the employee;

(d)  There are no other requirements or restrictions that a reasonable person would find to be an unreasonable burden or inconvenience; and

(e)  The use of an electronic payment system is optional at the election of the employee. Nev. Admin. Code R. 608.135(2).

A person engaged in any business or enterprise of any kind in this State shall not issue, in payment of, or as evidence of, any indebtedness for wages due an employee, any order, check, memorandum or other acknowledgment of indebtedness unless it is a negotiable instrument payable without discount, in cash on demand, at some bank, credit union or other established place of business but this subsection does not limit or interfere with the right of any employee, by agreement, to accept from any such person, as an evidence or acknowledgment of indebtedness for wages due the employee, a negotiable instrument payable at some future date with interest. Nev. Rev. Stat. Ann. § 608.130.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in New Hampshire, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in New Hampshire.

What if the employee requests a paper check?

In New Hampshire, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In New Hampshire, employees must be given the option to choose the financial institution to which their wages are deposited. Employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

In New Hampshire, employers may not charge the employee fees to offset the employer’s cost to operate the payroll card program.

Employers must provide employees with written copies of paycard terms and conditions as well as any fees associated with the paycard. Employers must notify employees of any changes in the paycard fee schedule prior to the changes taking place, or pay the difference until employees are informed.

If the paycard has an expiration date, the employer must provide a replacement card before expiration at no cost to the employee.

References

Every employer shall pay all wages due to employees within 8 days after the expiration of the work week if the employee is paid on a weekly basis, or within 15 days after the expiration of the work week if the employee is paid on a biweekly basis, except when permitted to pay wages less frequently as authorized by the commissioner pursuant to paragraph IV or IV-a(a), on regular paydays designated in advance by the employer and at no cost to the employee:

(a) In lawful money of the United States;

(b) By electronic fund transfer;

(c) By direct deposit with written authorization of the employee to banks of the employee’s choice;

(d) By a payroll card provided that the employer shall provide to the employee at least one free means to withdraw up to and including the full amount of the employee balance in the employee’s payroll card or payroll card account during each pay period at a financial institution or other location convenient to the place of employment. None of the employer’s costs associated with a payroll card or payroll card account shall be passed on to the employee; or

(e) With checks on a financial institution convenient to the place of employment where suitable arrangements are made for the cashing of such checks by employees for the full amount of the wages due; provided, however, that if an employer elects to pay employees as specified in subparagraphs (b), (c), or (d), the employer shall offer employees the option of being paid as specified in subparagraph (e), and further provided that all wages in the nature of health and welfare fund or pension fund contributions required pursuant to a health and welfare fund trust agreement, pension fund trust agreement, collective bargaining agreement, or other agreement adopted for the benefit of employees and agreed to by the employer shall be paid by every such employer within 30 days of the date of demand for such payment, the payment to be made to the administrator or other designated official of the applicable health and welfare or pension trust fund. N.H. Rev. Stat. § 275:43(I).

If an employer offers its employees the option of receiving wages by a payroll card, the employer shall:

(a) Provide to the employee written disclosure in plain language of all the employee’s wage payment options. The written disclosure shall state the terms and conditions of the payroll card account option, including, but not limited to, the requirements set forth in this section and a complete itemized list of all known fees that may be deducted from the employee’s payroll card account by the employer or card issuer. The disclosure shall also state whether third parties may assess transaction fees in addition to the fees assessed by the employee’s payroll card issuer or issuers. In no event shall the employer provide payment of wages to a payroll card that has an expiration date, unless the employer agrees to provide a replacement payroll card before the expiration date at no cost to the employee.

(b) Initiate payment of wages to an employee by electronic fund transfer to a payroll card account only after the employee has voluntarily consented in writing to that method of payment. Consent to payment of wages by electronic fund transfer to a payroll card account shall not be a condition of hire or of continued employment. The written consent signed by the employee shall include the terms and conditions of the payroll card account option.

(c) Provide written notice of any change to any of the terms and conditions of the payroll card or payroll card account, including but not limited to an itemized list of all fees that may have changed, and obtain written assent from the employee that the employee voluntarily consents to receive wages to a payroll card or payroll card account subject to the changes. The employer shall be responsible for any increase in fees charged to the employee before the employer provides written notice of such changes to the employee.

(d) Provide the employee the option to discontinue receipt of wages by a payroll card or payroll card account at any time, without penalty to the employee. N.H. Rev. Stat. § 275:43(II).

Can you require an employee to receive wages via direct deposit?

New Jersey direct deposit law states that an employer may pay wages by direct deposit, however, it must have the written consent of an employee to do so.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in New Jersey. Paycards cannot be a condition of employment and employees must receive a full dsclosure of the fee schedule before consenting.

What if the employee requests a paper check?

New Jersey wage payment laws require that an employer must provide wage via a paper check if requested by the employee.

What are the state requirements for accessing wages?

Employee must be provided a pay stub for each pay period any deductions were made.

In New Jersey, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

Employees having the right to make one free withdrawal at least once per pay period. Employee consent is required, and they must be able to choose a new payment method at any time. Employers are required to provide a written disclosure.

References

Except as otherwise provided by law, every employer shall pay the full amount of wages due to his employees at least twice during each calendar month, on regular paydays designated in advance by the employer, in lawful money of the United States or with checks on banks where suitable arrangements are made for the cashing of such checks by employees without difficulty and for the full amount for which they are drawn. N.J. Rev. Stat. § 34:11-4.2.

In lieu of paying wages directly to employees as provided by P.L.1965, c. 173, s. 2 (C. 34:11-4.2), an employer may, with the consent of some or all his employees, arrange with a financial institution or financial institutions to pay the wages of each employee so consenting by causing the amount of such employee’s wages to be deposited in an account maintained in any such financial institution in the name of such employee, subject to withdrawal and other disposition by such employee to the same extent and in the same manner as if such deposit were made directly by such employee. Any such employee may, on timely notice to the employer, elect not to have his wages deposited as provided herein, and to be paid such wages directly in the manner otherwise provided by law. Financial institution as used herein means any State-chartered or Federally-chartered institution authorized to accept deposits in New Jersey. N.J. Rev. Stat. § 34:11-4.2(a).

Except under the circumstances set forth in (h) and (i) below, payment of wages shall be in lawful money of the United States or with checks drawn on financial institutions where suitable arrangements are made for the cashing of such checks by employees without difficulty and for the full amount for which they were drawn. N.J. Admin. Code 12:55-2.4(d).

In lieu of paying wages directly to an employee in the manner prescribed in (d) above, an employer may arrange with a financial institution or financial institutions to pay the wages of an employee by direct deposit, provided that all of the following conditions are met:

1.  The employee shall first consent in writing to the direct deposit of his or her wages;

2.  Consent under (h)1 above shall be obtained by the employer without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the direct deposit arrangement;

3.  Consent under (h)1 above shall not be a condition of hire or continued employment;

4.  The employee’s wages so deposited shall be subject to withdrawal and other disposition by the employee to the same extent and in the same manner as if such deposit had been made directly by the employee under (d) above;

5.  The employee shall be furnished with a statement of deductions made from his or her wages for each pay period such deductions were made; and

6.  The employee shall, on timely notice to the employer, be permitted by the employer to elect not to have his or her wages deposited in the manner prescribed in this subsection and to be paid his or her wages directly in the manner provided under (d) above or as provided under (i) below. N.J. Admin. Code 12:55-2.4(h).

In lieu of paying wages directly to an employee in the manner prescribed in (d) above, an employer may pay the wages of an employee by causing the amount of such employee’s wages to be deposited in a payroll debit card account, provided that all of the following conditions are met:

1.  The employee shall first consent in writing to the deposit of his or her wages in a payroll debit card account;

2.  Consent under (i)1 above shall be obtained by the employer without intimidation, coercion, or fear of discharge or reprisal for refusal to accept the payroll debit card account deposit arrangement;

3.  Consent under (i)1 above shall not be a condition of hire or continued employment;

4.  The employee’s wages so deposited in a payroll debit card account shall be subject to withdrawal and other disposition by the employee to the same extent and in the same manner as if such deposit had been made directly by the employee under (d) above into an account maintained in a financial institution in the name of the employee.

i.  On at least one occasion per pay period, the employee shall be permitted, using the payroll debit card, to withdraw his or her wages in full, in lawful money of the United States, without any fee to the employee and without difficulty;

5.  The employee shall be furnished with a statement of deductions made from his or her wages for each pay period such deductions were made;

6.  Prior to obtaining consent from the employee under (i)1 above, the employer shall disclose in writing to the employee each of the features of the payroll debit card (for example, withdrawal at any ATM or point-of-sale use), including any fee(s), which may be charged to the card holder for the use of each of those features. The written disclosure required under this paragraph shall also include an explanation of the specific means by which the employee may, on at least one occasion per pay period, use the payroll debit card to withdraw his or her wages in full, in lawful money of the United States, without any fee to the employee and without difficulty; and

7. The employee shall, on timely notice to the employer, be permitted by the employer to elect not to have his or her wages deposited in the manner prescribed in this subsection and to be paid his or her wages directly in the manner provided under (d) above or in the manner provided under (h) above. N.J. Admin. Code 12:55-2.4(i).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in New Mexico, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in New Mexico.

What if the employee requests a paper check?

In New Mexico, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

Employers in New Mexico must offer a pay stub which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

Any fees applicable to paycards must be disclosed to the employee.

References

Wages shall be paid in awful money of the United States or in checks, payroll vouchers or drafts on banks, convertible into cash on demand at full face value or, with the voluntary authorization of the employer, employee and financial institution, by deposit to the account of the employee in any bank, savings and loan association, credit union or other financial institution authorized by the United States or one of the several states to receive deposits in the United States, without any reduction or deduction, except as may be specifically stated in a written contract of hiring entered into at the time of hiring. An employer shall provide an employee with a written receipt that identifies the employer and sets forth the employee’s gross pay, the number of hours worked by the employee, the total wages and benefits earned by the employee and an itemized listing of all deductions withheld from the employee’s gross pay. N.M. Stat. § 50-4-2(B).

Per prior correspondence with the New Mexico Department of Workforce, we understand that paycards are acceptable so long as the employee has agreed to this form of payment and the employer’s use of the card otherwise comports with New Mexico wage and hour law.

Can you require an employee to receive wages via direct deposit?

New York direct deposit law states that an employer may pay wages by direct deposit, however, it must have the written consent of an employee to do so and the employee must be able to choose the financial institution where their direct deposit is sent.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in New York.

What if the employee requests a paper check?

New York wage payment laws require that an employer must provide wage via a paper check if requested by the employee.

What are the state requirements for accessing wages?

In New York, employees must be given the option to choose the financial institution to which their wages are deposited. Employees must be paid wages in full on regular agreed paydays.

In New York, employees must be able to make unlimited free withdrawals, up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account via bank teller and/or ATMs. Employees must have reasonably convenient access to withdraw their wages.

Employees must be provided with a pay stub that includes an explanation of how wages are computed.

What are the state regulations for payroll card fees?

In New York, employers may not charge the employee services that are essential to access full wages (e.g., account maintenance fees, card issuance fees, fees for card replacement at reasonable intervals, and fees for withdrawing wages).

Employers must provide employees with written copies of paycard terms and conditions as well as any fees associated with the paycard.

Employers may not charge fees for services that are essential to access full wages (e.g., account maintenance fees, card issuance fees, fees for card replacement at reasonable intervals, and fees for withdrawing wages).

References

No employer shall without the advance written consent of any employee directly pay or deposit the net wage or salary of such employee in a bank or other financial institution.

This section shall not apply to any person employed in a bona fide executive, administrative, or professional capacity whose earnings are in excess of nine hundred dollars a week, nor to employees working on a farm not connected with a factory. N.Y. Labor Code § 192.

When paying wages by check, an employer shall ensure that:

(a)  the check is a negotiable instrument; and

(b)  the employer does not impose any fees in connection with the use of checks for the payment of wages, including a fee for replacement of a lost or stolen check. N.Y. Labor Code § 192-2.1.

When paying wages by direct deposit, an employer shall ensure that:

(a)  it has consent from the employee;

(b)  a copy of the employee’s consent must be maintained by the employer during the period of the employee’s employment and for six years following the last payment of wages by direct deposit. A copy of the employee’s written consent must be provided to the employee; and

(c)  such direct deposit is made to a financial institution selected by the employee. N.Y. Labor Code § 192-2.2.

When paying wages by payroll debit card, an employer shall ensure that:

(1)  it has consent from the employee;

(2)  it provides the information referenced in section 192-1.3(a) and receives consent at least seven business days prior to taking action to issue the payment of wages by payroll debit card, during such seven business days the employee’s consent shall not take effect. N.Y. Labor Code § 192-2.3.

Advance written consent of the employee should be kept on file by the employer. The consent form should contain the name and location of the bank or financial institution and a description of the account. The consent of the employee must be voluntary and an employer shall not institute an arrangement of direct deposit of wages in a bank or financial institution in the face of employee objection. The consent must be revocable at will. Employees who do not consent to a direct deposit arrangement must receive wages in cash or by check.

An employee shall not be obliged to incur expense in the arrangement whereby the employee’s

wages or salary are directly deposited in a bank or financial institution or in the withdrawal of such wages or salary from the bank or financial institution…

An employee shall not be obliged to lose a substantial amount of uncompensated time in order to withdraw wages from a bank or financial institution. Although the employer is not required to provide employees with paid time in which to withdraw such monies, the Department has held that the employer should provide for the loss of time when the employee requires more than 15 minutes to withdraw wages. Such time includes travel time to and from, as well as actual time spent at the bank or financial institution in withdrawing such monies. Moreover, the withdrawal of wages may not interfere with an employee’s meal period to the extent that it decreases the meal period to less than thirty minutes.

Thus, although the time required for withdrawal of wages may be 15 minutes or less, the loss of even 8 or 10 minutes from a thirty minute meal period curtails it to an unacceptably short duration.

The law requires that an employee be paid wages in full on regular agreed paydays. The direct deposit of wages in a bank or financial institution, therefore, should anticipate that an employee should be able to withdraw such wages in full on the regular agreed payday. The arrangement of direct deposit, therefore, may not include the withholding of any part of the employee’s wages on the regular payday or afterwards. New York Department of Labor, Division of Labor Standards, Guidelines: Direct Deposit of Wages in a Bank or Financial Institution, available at https://www.labor.state.ny.us/formsdocs/wp/ls445.pdf.

Agency Enforcement Position: The Agency takes the position that payroll cards are a form of direct deposit. Accordingly, an employer may pay wages using payroll cards provided:

1. Consent. The employee consents to the program in writing;

·         Consent may not be made a condition of employment;

·         Consent provided prior to the inception of the employment relationship is ineffective;

·         The consent requirement does not apply to employees working in a bona fide executive, administrative or professional capacity earning in excess of $900/week;

·         The consent requirement does not apply to employees working on a farm not connected with a factory.

2. Cash Access.

·         The Department takes the position that that employees paid by debit card must be provided with an effective means by which to make an unlimited number of withdrawals from the card without incurring fees;

·         Withdrawals may be from a bank teller and/or through the use of ATMs;

·         The location at which free withdrawals may be made must be within a reasonable distance of the employee’s worksite;

·         The employee has full access to his or her wages, to the penny. The employer must take positive steps to ensure that employees can obtain their entire wages from bank branches in close proximity to the employee;

·         There are no encumbrances (e.g., minimum balance requirements) that delay or limit the employee’s access to his or her wages.

3. Disclosures. The employee is provided with full notice of the terms and conditions of the payroll card program, including fees.

4. Fee Prohibitions.

·         The employee is not charged fees for services that are essential to access his or her full wages (e.g., account maintenance fees, card issuance fees, fees for card replacement at reasonable intervals, and fees for withdrawing wages);

Note: Fees imposed by a bank for incidental services provided to employees (such as the purchase of money orders, electronic bill-pay and the use of the debit card at other institutions) are not prohibited.

5. Timely Payment. Wages are paid in a timely manner (improper delays include holds for “clearance” of funds deposited);

6. Kickbacks. Although fees imposed by a bank for incidental services are not prohibited, no part of the fees may be remitted or otherwise directed to the employer or its subsidiary; and

7. Pay Stubs. The employee continues to receive a wage statement as required by §195(3).

Note: The Agency cautions that adherence to the above requirements does not guarantee compliance in every possible case.

Letters from Counsel for the New York State Department of Labor (October 29, 2009 and January 15, 2010).

Please note that the New York Department of Labor has introduced new regulations regarding pay cards, which have been subject to recent litigation; however, it is unclear as of April 2019 if and when the regulations will take effect.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in North Carolina, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Employers can authorize full deployment of payroll cards in North Carolina, provided employees are not subject to deposit-related fees.

What if the employee requests a paper check?

North Carolina wage payment laws do not require that an employer must provide wage via a paper check if requested by the employee.

What are the state requirements for accessing wages?

In North Carolina, employees must be given the option to choose the financial institution to which their wages are deposited.

In North Carolina, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

Where employers mandate direct deposit or payroll card, any fees to use the card cannot place the employee in a position where they would be receiving less than minimum wage. If direct deposit or payroll cards are optional, fees are permitted so long as they are disclosed to the employee.

References

The employer may select any legal form of payment, so long as payment is made in full on the designated payday, subject to authorized deductions and legal withholdings. Acceptable forms of payment include cash, money order, negotiable checks, and direct deposit into an institution whose deposits are insured by the United States government or an institution selected by the employee. 13 N.C. Admin. Code § 12.0309.

Agency Enforcement Position:

It is the administrative enforcement position of the North Carolina Department of Labor’s Wage and Hour Bureau that the payment of employees by “Debit/Payroll Card” is an acceptable form of payment for North Carolina employers as long as both conditions are met

·         The employee can withdraw all monies due on payday.

·         One-time use of the card by the employee on payday is at no cost to the employee.

More and more employers may elect this form of payment once banks solve the issue of “no-cost withdrawals” on payday.

Here are some Q&As:

If the card is optional (not required by the employer) and the fees are disclosed to the employee, may the Bank impose a monthly fee and a withdrawal fee for each withdrawal after the initial “no cost” withdrawal?

Yes, since the employer is not mandating the use of the debit/payroll card. In this context, the cards are used just as any other ATM/Debit Card and bank fees for transactions do not require an employer to obtain written authorizations from employees.

Please confirm that the following is correct: If the card is mandatory (required by the employer) an employee must receive his pay without reduction. This rule is satisfied if the bank allows five free withdrawals per month, which can be either ATM and/or teller withdrawals, at the election of the employee. If a monthly card fee is imposed by the bank, the employer must obtain the employee’s consent to that fee. If a withdrawal fee is imposed for each withdrawal, the employee must consent to that fee. The amount of the fees need to be agreed to by the employee.

Partially correct. If the employee is provided five free withdrawals each month to coincide with weekly paydays, no employee authorization is required. The bank-imposed monthly fee cannot apply to the “one-time” withdrawal of all monies on payday. Subsequent withdrawals can be subject to “bank-imposed” fees and do not require any authorization from the employee by the employer since this is a contractual issue between the bank and the employee.

Compliance with both state and federal minimum wage law is a possible issue. If an employee is only making minimum wage, then it is understood that any bank fees could result in a minimum wage violation. However, if the card is optional, can any bank fees bring the minimum-wage employee below the minimum wage?

Yes. But if the card is not optional (it is a mandatory form of payment by the employer), then any bank fees cannot be passed on to a minimum-wage employee even if the employee pays these fees “out-of-pocket”.

Direct Deposit Enforcement Position

The payment of wages by direct deposit is a recognized form of payment as stated in 13 NCAC 12.0309, Form of Payment of Wages: G.S. 95-25.6 and G.S. 95- 25.7 do not require a specific form of payment. Therefore, the employer may select any legal form of payment, so long as payment is made in full on the designated payday, subject to authorized deductions and legal withholdings. Acceptable forms of payment include cash, money order, negotiable checks, and direct deposit into an institution whose deposits are insured by the United States government or an institution selected by the employee.

It is entirely up to the employer to pay or not to pay some or all of its employees by direct deposit. An employer can make the payment of wages by direct deposit as a condition of employment without violating the Wage and Hour Act. If direct deposit is the only option offered the employee, the employees must be able to choose their own financial institution. If direct deposit is used in conjunction with the use of a payroll card account, an employer can require the payroll card account to be with a particular financial institution as long as deposits in that institution are insured by the U.S. government, and as long as regular direct deposit is offered to any financial institution of the employee’s choice.

It is also the enforcement position of the N.C. Department of Labor that if the payment of wages by direct deposit by an employer is mandatory, then its employees must not incur additional costs as a result of participation—such as bank fees—if those costs result in an employee being paid less than the N.C. minimum wage of $7.25 an hour. Conversely, we take the position that if direct deposit is completely optional and an employee elects to be paid by direct deposit, then the costs to this employee can bring the employee’s pay below the minimum wage. N.C. Dept. of Labor, Direct Deposit Enforcement Position, available at https://www.labor.nc.gov/workplace-rights/employee-rights-regarding-time-worked-and-wages-earned/debit-payroll-card-payment.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in North Dakota, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in North Dakota. Paycards must be FDIC-insured.

What if the employee requests a paper check?

In North Dakota, employers are not obligated to provide paper checks.

What are the state requirements for accessing wages?

In North Dakota, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

There are no specific regulations in North Dakota regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer shall pay all wages due to employees at least once each calendar month on regular agreed paydays designated in advance by the employer. Wages must be paid in lawful money of the United States; with checks, as that item is used in chapter 41-03, drawn on banks or credit unions convenient to the place of employment; with direct deposit in the financial institution of the employee’s choice; or, at the election of the employee when offered by the employer, by delivery to the employee of a stored value card that meets the requirements of this section. A stored value card that is used by an employer to pay wages must be issued by a federally insured bank or credit union. The value of the funds underlying a stored value card that is used by an employer to pay wages must be a deposit that is insured by the federal deposit insurance corporation or national credit union administration. Before paying wages by delivering a stored value card to an employee, an employer must have deposited with the issuer funds in an amount at least equal to the wages due from the employer to each employee whose wages are being paid through a stored value card and any account fees that are charged to the employer by the issuer. N.D. Cent. Code § 34-14-02.

Can you require an employee to receive wages via direct deposit?

No applicable statute.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in Ohio, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

Ohio does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

There are no specific requirements for accessing wages in Ohio, but it is a recommended best practice that employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

There are no specific regulations in Ohio regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

“Wage” means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to the deductions, charges, or allowances permitted by rules of the director of commerce under section 4111.05 of the Revised Code. Ohio Rev. Stat. § 4111.01(A).

Per correspondence with the Ohio Department of Commerce, Wage and Hour Bureau in May 2016, the Agency takes the position that wage payment is a matter of company policy. An employer may require direct deposit and may give employees the choice between direct deposit and a payroll card.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Oklahoma, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

In Oklahoma, employers cannot require the use of a payroll card. The employee can choose to use a payroll card, but it must be voluntary.

What if the employee requests a paper check?

In Oklahoma, employers are not obligated to provide paper checks..

What are the state requirements for accessing wages?

In Oklahoma, employees must be given the option to choose the financial institution to which their wages are deposited.

In Oklahoma, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

Employers in Oklahoma must offer a pay stub which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

Employees in Oklahoma cannot be charged a fee for receiving wages by electronic means.

ReferencesThe amount due such employees shall be paid in lawful money of the United States, including payment by electronic means, and the employee shall not be deemed to have waived any right or rights mentioned in this section because of any contract to the contrary. With each payment of wages earned by such employee, the employer shall issue to such employee a brief itemized statement of any and all deductions therefrom. An interval of not more than eleven (11) days may elapse between the end of the pay period worked and the regular payday designated by the employer. 40 Okla. Stat. § 165.2.

Oklahoma Attorney General Opinion: §165.2 (allowing employers to pay wages by electronic means) must be interpreted in accordance with the federal Electronic Funds Transfer Act (EFTA) and Regulation E. As such, employers in Oklahoma may require direct deposit of wages but only if:

1. Employees are allowed to select the financial institution that will receive the direct deposit, and

2. The funds are redeemable by the employee upon demand, without discount, in lawful U.S. money without the employee having to pay a fee to receive the funds. Okla. Attorney General Opinion No. 09-31(November 17, 2009).

Oklahoma Attorney General Opinion: §165.2 must be interpreted in accordance with the federal Electronic Funds Transfer Act (EFTA) and Regulation E. Employers in Oklahoma may pay employees using payroll card as follows:

1. Employees may not be compelled to receive wages through a payroll card account, but may consent to payment in this manner. (The letter does not specifically address whether an employer may give employees the choice between receiving their wages by direct deposit or on a payroll card only. (See federal law discussion of the EFTA and Regulation E). )

2. Regardless of method of payment, wages must be payable or redeemable on demand without discount in lawful U.S. money.

3. Employees must be provided with a statement of deductions (i.e., a pay stub). According to the Attorney General, this requires an affirmative act by the employer to deliver the statement. For example, the statement may be e-mailed to employee if the employee provides the employer with an e-mail address. Merely placing the statement on a website where the employee has to retrieve it is not permissible. Okla. Attorney General Opinion No. 09-31(November 17, 2009).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Oregon, provided employees can still receive a paper check upon request.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Oregon.

What if the employee requests a paper check?

In Oregon, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Oregon, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account, or be able to choose another means of receiving wages which does not involve any cost to the employee. Employees must be able to withdraw their wages at a bank or other established place of business in the county where the paycard is issued.

What are the state regulations for payroll card fees?

In Oregon, employees cannot be charged a fee for receiving wages by electronic means.

References

An employer may pay wages without discount through direct deposit of wages due to an employee into the employee’s account. Ore. Rev. Stat. § 652.110(3).

An employer shall pay wages due to an employee by check upon the written or oral request of the employee. Ore. Rev. Stat. § 652.110(4).

An employer and an employee may agree that the employer may pay wages through an automated teller machine card, payroll card or other means of electronic transfer if the employee may:

(a) Make an initial withdrawal of the entire amount of net pay without cost to the employee; or

(b) Choose to use another means of payment of wages that involves no cost to the employee. Ore. Rev. Stat. § 652.110(5).

An agreement described in subsection (5) of this section must be made in the language that the employer principally uses to communicate with the employee. Ore. Rev. Stat. § 652.110(6).

(a) Except as provided in paragraph (b) of this subsection, to revoke an agreement described in subsection (5) of this section, an employee shall give the employer a written notice of revocation of the agreement. Unless the employer and employee agree otherwise, the agreement is revoked 30 days after the date the notice is received by the employer.

(b) To revoke an agreement described in subsection (5) of this section, an employee who works for an employer as a seasonal farmworker as defined in ORS 652.145 or an employee who is employed in packing, canning, freezing or drying any variety of agricultural crops shall give the employer notice of revocation of the agreement either orally or in writing. Unless the employer and the employee agree otherwise, the agreement is revoked 10 days after the date the notice is received by the employer. Ore. Rev. Stat. § 652.110(7).

Agency Enforcement Position:

Q. Can my employer require direct deposit or payment by debit card?

A. Oregon law allows employers to pay wages by direct deposit but you can opt out either verbally or in writing. Employers are also able to pay employees by automated teller machine card, payroll card, or other means of electronic transfer as long as the employee voluntarily agrees. The employee must be able to make an initial withdrawal of the entire amount without cost or be able to choose another means of receiving wages which does not involve any cost to the employee. ORS 652.110(5).

Employers who use the direct deposit, automated teller machine card, or payroll card method of paying wages must still provide an itemized statement and meet the deadlines applicable to final paychecks. The final paycheck may be paid by direct deposit, automated teller machine card, or payroll card with the agreement of the departing employee. ORS 652.140(4). Bureau of Labor and Industries, Frequently Asked Questions, available at https://www.oregon.gov/boli/WHD/Pages/Frequently-Asked-Questions.aspx.

According to ORS 652.110 employers may require employees go on direct deposit without employee consent.  Previously, employers and employees had to agree to authorize direct deposit but since 2014, employers can have direct deposit as the default. Employees must now proactively opt out of direct deposit. Employees can opt out of direct deposit verbally or in writing. Employees unable or unwilling to go on direct deposit will likely notify their employer immediately. If they make this request, employers can also point them to electronic options such as debit cards. Bureau of Labor and Industries, Technical Assistance for Employers: Direct Deposit of Employee Wages: Frequently Asked Questions, available at https://www.oregon.gov/boli/TA/pages/t_faq_directdeposit.aspx.

Payment of wages by debit card is legal and permitted by ORS 652.110 (5) if the employer and employee agree to this arrangement. Also, the instrument of payment – in this case, the debit card – must be negotiable and “payable without discount in cash on demand at some bank or other established place of business” in the county where it is issued. The Bureau´s interpretation of this statutory language is that the employee must be able to receive the full amount of his or her wages by swiping the card and may not be charged any fee for doing so. Bureau of Labor and Industries, Technical Assistance for Employers: Direct Deposit of Employee Wages: Frequently Asked Questions, available at https://www.oregon.gov/boli/TA/pages/t_faq_directdeposit.aspx.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Pennsylvania, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Pennsylvania. Employers must provide employees with an itemized fee schedule, an explanation of third party fees, and an explanation of how the employee may obtain, at no cost, the employee’s net wages, check the account balance, and request to receive transaction histories. Consenting to this method of payment must not be a condition of employment.

What if the employee requests a paper check?

In Pennsylvania, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

Employers in Pennsylvania must offer a pay stub which can be printed at no cost to the employee. Employees must be provided with a method of checking the balance of the paycard via phone or other electronic means without cost.

In Pennsylvania, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account. Employees must be able to make one in-network ATM withdrawal each pay period. Employees must be provided one free replacement card per year upon request.

What are the state regulations for payroll card fees?

In Pennsylvania, employees cannot be charged activation or initiation fees for participating in the payroll card program. Employees cannot be charged fees for the issuance of the payroll card, the issuance of one replacement card per year upon request, the transfer of wages to the payroll card, purchase transactions, or inactivity.

References

The wages shall be paid in lawful money of the United States or check, except that deductions provided by law, or as authorized by regulation of the Department of Labor and Industry for the convenience of the employee. 43 Pa. Stat. § 260.3.

For the purposes of any statute, rule or regulation requiring any payment to be made in lawful money or by check, whether for wages, salaries, commissions or other claims of any kind, the payment may be made by credit to an account in a financial institution, including a payroll card account, authorized to accept deposits or payments if the recipient has authorized the method of payment in writing or electronically. 7 Pa. Stat. § 6121.1.

When wages, salaries, commissions or other payments are transferred to an account at a financial institution as described in section 1.1:

(1)  the financial institution holding the account to which transfers are made shall provide the employee or other payee with the disclosures, notices of transfer, change in term notices, access to account information and other consumer protections to the extent required by 12 CFR Part 1005 (relating to electronic fund transfers (Regulation E)); and

(2)  an employer shall provide an employee with a written or electronic statement of earnings and deductions each pay period in accordance with applicable law.7 Pa. Stat. § 6122.

In addition to any other requirements under this act, all of the following provisions apply when payment of wages, salaries, commissions or other compensation is made through transfers to a payroll card account: The employee shall be issued a payroll card in accordance with 12 CFR Part 1005 (relating to electronic fund transfers (Regulation E)). 7 Pa. Stat. § 6122.1(1).

The payroll card account shall be established at a financial institution whose funds are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. 7 Pa. Stat. § 6122.1(2).

No employer may make the payment of wages, salary, commissions or other compensation by means of a payroll card account a condition of employment or a condition for the receipt of any benefit or other form of remuneration for any employee. 7 Pa. Stat. § 6122.1(3).

Prior to obtaining an employee’s authorization, the employer shall provide the employee with clear and conspicuous notice, in writing or electronically, of all of the following:

(i)  All of the employee’s wage payment options.

(ii)  The terms and conditions of the payroll card account option, including the fees that may be deducted from the employee’s payroll card account by the card issuer.

(iii)  A notice that third parties may assess fees in addition to the fees assessed by the card issuer. (iv) The methods available to the employee for accessing wages without fees. 7 Pa. Stat. § 6122.1(4).

The payroll card account shall provide the employee with the ability without charge to make: (i) At least one withdrawal each pay period for any amount up to and including the full amount of the employee’s net wages for that period or one such withdrawal weekly if the employee is paid more frequently than weekly. (ii) One in-network ATM withdrawal each pay period or one such withdrawal weekly if the employee is paid more frequently than weekly. 7 Pa. Stat. § 6122.1(5).

The payroll card account shall provide the employee with a means of ascertaining the balance in the employee’s payroll card account through an automated telephone system or other electronic means without cost to the employee. 7 Pa. Stat. § 6122.1(6).

In addition to the fees prohibited under paragraphs (5) and (6), an employer may not use a payroll card account that charges fees to the employee for any of the following:

(i)  The application, initiation or privilege of participating in the payroll card program.

(ii)  The issuance of the initial payroll card.

(iii)  The issuance of one replacement card per calendar year upon request of the employee.

(iv)  The transfer of wages, salary, commissions or other compensation from the employer to the payroll card account.

(v)  Purchase transactions at the point of sale.

(vi)  Nonuse or inactivity in a payroll card account consisting of the failure to withdraw funds from an account, deposit funds into an account, transfer funds to another person or use an account for purchase transactions, if the nonuse or inactivity is less than 12 months in duration. 7 Pa. Stat. § 6122.1(7).

The funds in a payroll card account shall not expire. If a payroll card has an expiration date during the period when wages, salary or other compensation are applied to the payroll card account by the employer and for 60 days after the last transfer of wages, salary, commissions or other compensation to the account, the employee shall be provided a replacement card without cost prior to the expiration date, unless prior to that date the account becomes subject to the custody and control of the Commonwealth under Article XIII.1 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, or pursuant to the unclaimed property or escheat law of another state, the District of Columbia or a territory of the United States. 7 Pa. Stat. § 6122.1(8).

The employer shall honor an employee’s written or electronic request to change the employee’s method of receiving wages from a payroll card account to direct deposit or negotiable check. The change shall take effect as soon as practicable, but no later than the first payday after 14 days from receipt by the employer of the employee’s request and any information necessary to implement the change. 7 Pa. Stat. § 6122.1(9).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Rhode Island, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Rhode Island.

What if the employee requests a paper check?

In Rhode Island, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Rhode Island, employees must be given the option to choose the financial institution to which their wages are deposited.

In Rhode Island, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account. If an employee is paid more frequently than weekly, the employee must be able to make at least one withdrawal without charge each week for any amount up to the full amount of the employee’s net wages for that week.

Employees must be able to make unlimited balance inquiries without cost either through an automated telephone system or online.

What are the state regulations for payroll card fees?

There are no specific regulations in Rhode Island regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer shall establish a regular payday on which wages shall be paid in full in lawful money of the United States, or checks on banks convertible into cash on demand at full face value. Each employee must be notified in writing, or by posted notice that may readily be seen by all employees, of a change in the scheduled payday at least three (3) paydays in advance of a scheduled change. Each scheduled payday shall fall within nine (9) days of the end of the payroll period for which wages are computed unless prevented by inevitable casualty; provided, that if the ninth (9th) day is a holiday, payment upon the next business day shall be deemed a compliance with the terms of this section; and provided, further, that if at any time of payment any employee is absent from his or her place of labor, he or she shall be entitled to payment on demand at any time thereafter. R.I. Gen. Laws § 28-14-2.

Notwithstanding any other provision of law, upon written or electronic request, an employee of a state agency or any other employer may authorize a disbursing officer to make payment by sending to a financial organization designated by the employee a check or credit in the amount of net pay due to the employee drawn in favor of the organization and for credit to the checking account or payroll card of the employee or for deposit in the savings account of the employee or for the purchase of shares for the employee. R.I. Gen. Laws § 28-14-10.1(a).

“Payroll card account” means an account that is directly or indirectly established through an employer to which transfers of the employee’s wages, salary, or other compensation are made, and that carries the consumer protections that apply to payroll card accounts under the Electronic Fund Transfer Act, 15 U.S.C. § 1693 et seq., and Regulation E, 29 C.F.R. Part 1005, as may be amended. R.I. Gen. Laws § 28-14-10.1(e).

If an employer pays wages to an employee by credit to a payroll account:

(1)  Except as provided in subsection (f)(2) of this section, the employee must be able to make at least one withdrawal from the payroll card account in each pay period without charge for any amount up to and including the full amount of the employee’s net wages for the pay period.

(2)  If the employee’s wages are paid more frequently than weekly, the employee must be able to make at least one withdrawal from the payroll card account each week without charge for any amount up to and including the full amount of the employee’s net wages for that week.

(3)  Employees who receive wages by credit to a payroll card account must be provided with a means of checking their payroll card account balances, either through an automated telephone system or online, through the use of the internet, without cost, irrespective of the number of inquiries made. R.I. Gen. Laws § 28-14-10.1(f).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in South Carolina, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in South Carolina, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

In South Carolina, employers are not obligated to provide paper checks.

What are the state requirements for accessing wages?

In South Carolina, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

Employees must be provided a statement of earnings and withholdings.

What are the state regulations for payroll card fees?

There are no specific regulations in South Carolina regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer in the State shall pay all wages due in lawful United States money or by negotiable warrant or check bearing even date with the payday. S.C. Code Ann. § 41-10-40(A).

An employer may deposit all wages due to the employee’s credit at a financial institution which is doing business in the State and is insured by an agency of the federal government. When an employee’s wages are paid by deposit at a financial institution, he must be furnished a statement of earnings and withholdings. Any wage deposit plan adopted by an employer shall entitle each employee to at least one withdrawal for each deposit, free of any service charge. S.C. Code Ann. § 41-10-40(B).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in South Dakota, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in South Dakota, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

South does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

There are no specific requirements for accessing wages in South Dakota, but it is a recommended best practice that employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

There are no specific regulations in South Dakota regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer shall pay all wages due to employees at least once each calendar month unless otherwise provided by law, or on regular agreed pay days designated in advance by the employer, in lawful money of the United States. An employer may pay wages by check, cash, or direct deposit to the employee’s bank account, unless an employer and employee agree to another form of payment. S.D. Code § 60-11-9.

Can you require an employee to receive wages via direct deposit?

Employers must provide employees with a fee schedule and option to enroll in direct deposit to a bank account before signing an employee up for a paycard.

Does the employee need to consent to receiving their wages on a payroll card?

Employers must provide employees with a fee schedule and option to enroll in direct deposit to a bank account before signing an employee up for a paycard.

What if the employee requests a paper check?

In Tennessee, employers are not obligated to provide paper checks.

What are the state requirements for accessing wages?

In Tennessee, employees must be given the option to choose the financial institution to which their wages are deposited.

In Tennessee, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

There are no specific regulations in Tennessee regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

The payment of wages or compensation of employees in the employments defined in this section shall be made as follows:

(A)  In lawful money of the United States;

(B)  By a good and valid negotiable check or draft, payable on presentation of the check or draft at some bank or other established place of business without discount, exchange or cost of collection, in lawful money of the United States;

(C)  Electronic automated fund transfer in lawful money of the United States; or

(D)  Credit to a prepaid debit card issued through a network system from which the employee is able to withdraw or transfer funds, subject to the limitations contained in subdivisions (e)(2) and (3).

(2)  An employer who chooses to compensate its employees using prepaid debit cards under subdivision (e)(1)(D) shall also give employees the choice of being paid by electronic transfer under subdivision (e)(1)(C). If after the employer has explained this system to an employee and provided full written disclosure of any applicable fees associated with the prepaid debit card and the employee does not designate an account at a financial institution in advance and as required by the employer for the payroll transfer to occur, then the employer may arrange to pay such employee by prepaid debit card pursuant to subdivision (e)(1)(D).

(3)  If an employer pays its employees their wages on a prepaid debit card pursuant to subdivision (e)(1)(D), then such employer shall ensure that each employee shall have the ability to make at least one (1) withdrawal or transfer from the prepaid debit card per pay period without cost to the employee for any amount contained on the card. Tenn. Code § 50-2-103(e).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Texas, provided employees are given 60 days’ notice prior to implementation.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Texas.

What if the employee requests a paper check?

Texas does not have specific laws governing reception of wages via paycards and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

In Texas, employees must be given the option to choose the financial institution to which their wages are deposited.

What are the state regulations for payroll card fees?

There are no specific regulations in Texas regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

(a) An employer shall pay wages to an employee:

(1) in United States currency;

(2) by a written instrument issued by the employer that is negotiable on demand at full face value for United States currency; or

(3) by the electronic transfer of funds.

(b) An employee may agree in writing to receive part or all of the wages in kind or in another form.

(c) Payment by a written instrument that is not negotiable or for which payment is refused for any reason attributable to the employer does not constitute payment of wages for the purposes of this chapter. Tex. Lab. Code § 61.016.

An employer may pay wages by:

(1) delivering them to the employee at the employee’s regular place of employment during regular employment hours;

(2) delivering them to the employee at a time and place agreed on by the employer and employee;

(3) sending them to the employee by registered mail, to be received by the employee not later than payday;

(4) delivering them in a manner similar to a manner specified by Subdivision (1), (2), or (3) to a person designated by the employee in writing; or

(5) delivering them to the employee by any reasonable means authorized by the employee in writing. Tex. Lab. Code § 61.017(b)

An employer may elect to pay wages to an employee who maintains at a financial institution an account that qualifies for electronic funds transfer through a direct deposit plan that uses electronic funds transfer to deposit the wages in the employee’s account. An employer who desires to pay wages through a direct deposit plan shall:

(1) notify each affected employee in writing, at least 60 days before the date on which the direct deposit payroll system is scheduled to begin, that the employer is adopting a direct deposit payroll system; and

(2) obtain from the employee any information required by the financial institution in which the employee maintains the account that is necessary to implement the electronic funds transfer. Tex. Lab. Code § 61.017(c).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Utah, provided employees can still receive a paper check upon request; however, employers can authorize full deployment of direct deposit in Utah if at least 2/3 of employees received their wages through direct deposit or the employer’s federal employment tax deposits for the previous year are $250,000 or more.

Does the employee need to consent to receiving their wages on a payroll card?

Employees can revoke consent to receiving their wages via paycard at any time in Utah; however, employers can authorize full deployment of direct deposit in Utah if at least 2/3 of employees received their wages through direct deposit or paycards or the employer’s federal employment tax deposits for the previous year are $250,000 or more.

What if the employee requests a paper check?

In Utah, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment, unless at least 2/3 of employee receive their wages through direct deposit or paycards or the employer’s federal employment tax deposits for the previous year are $250,000 or more.

What are the state requirements for accessing wages?

In Utah, employees must be given the option to choose the financial institution to which their wages are deposited.

In Utah, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

Employers in Utah must offer a pay stub which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

There are no specific regulations in Utah regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Wages shall be paid in full to an employee:

(i) in lawful money of the United States;

(ii) by a check or draft on a depository institution, as defined in Section 7-1-103, that is convertible into cash on demand at full face value; or

(iii) by electronic transfer to the depository institution designated by the employee. Utah Code § 34-28-3(1)(e).

An employer may not issue in payment of wages due or as an advance on wages to be earned for services performed or to be performed within this state an order, check, or draft unless:

(a) it is negotiable and payable in cash, on demand, without discount, at a depository institution; and

(b)  the name and address of the depository institution appears on the instrument. Utah Code § 34-28-3(2).

(a) Except as provided in Subsection (3)(b), an employee may refuse to have the employee’s wages deposited by electronic transfer under Subsection (1)(e)(iii) by filing a written request with the employer.

(b) An employee may not refuse to have the employee’s wages deposited by electronic transfer under Subsection (3)(a) if:

(i) for the calendar year preceding the pay period for which the employee is being paid, the employer’s federal employment tax deposits are equal to or in excess of $250,000; and

(ii) at least two-thirds of the employees of the employer have their wages deposited by electronic transfer.

(c) An employer may not designate a particular depository institution for the exclusive payment or deposit of a check or draft for wages. Utah Code § 34-28-3(3).

If a deduction is made from the wages paid, the employer shall, on each regular payday, furnish the employee with a statement showing the total amount of each deduction. Utah Code § 34-28-3(4).

An employer licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, shall:

(a) on the day on which the employer pays an employee, give the employee a written or electronic pay statement that states:

(i) the employee’s name;

(ii) the employee’s base rate of pay;

(iii) the dates of the pay period for which the individual is being paid;

(iv) if paid hourly, the number of hours the employee worked during the pay period;

(v) the amount of and reason for any money withheld in accordance with state or federal law, including:

(A) state and federal income tax;

(B) Social Security tax;

(C) Medicare tax; and

(D) court-ordered withholdings; and

(vi) the total amount paid to the employee for that pay period; and

(b) comply with the requirements described in Subsection (5)(a) regardless of whether the employer pays the employee by check, cash, or other means. Utah Code § 34-28-3(5).

A pay card is a stored value card that can be used at an ATM-type machine to access wages that are credited to the card. An employer may use a pay card to pay an employee’s wages if the following conditions are met:

A. With one use, the employee shall be able to withdraw the full amount of earned wages without incurring a fee. “One use” means a single transaction.

B. The full amount of wages for a pay period shall be available for the employee via the pay card on the applicable payday.

C.  On each payday, the employer shall provide the employee a statement of deductions from the employee’s gross wages for the subject pay period. This statement shall be provided:

1. in writing, or

2.  electronically, provided that the employee must be able to easily and immediately access the information and print a paper copy of the same, without cost. Utah Admin. Code R610-3-22.

Agency Enforcement Position: The Utah Labor Commission has confirmed that the intent of the Rule was to allow employers to pay their employees using paperless methods only. According to the Commission, an employer may give employees the choice between a payroll card and direct deposit without also offering a paper paycheck. (e-mail correspondence May 6, 2016).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Vermont, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Vermont after providing employees with all of the payment options, the paycard terms and conditions, and the paycard fee schedule, including third party fees. Consenting to this method of payment must not be a condition of employment.

What if the employee requests a paper check?

In Vermont, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Vermont, employees must be able to make three free withdrawals, one of which is up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

The payroll card must be branded and must be able to be used at a PIN-based or signature-based outlet.

Employers in Vermont must provide one free written transaction history each month that includes all deposits, withdrawals, deductions or charges for the past sixty days. Employees must be able to receive the transaction history through email at their request.

What are the state regulations for payroll card fees?

The paycards must not allow overdrawn accounts and must provide one free replacement card per year.

In Vermont, employers may not charge the employee any fees for adding funds to their payroll card via ACH direct deposit, including initiation fees, participation fees or loading fees.

References

With the written authorization of an employee, an employer may pay wages due the employee by any of the following methods:

(1)   Deposit through electronic funds transfer or other direct deposit systems to a checking, savings, or other deposit account maintained by or for the employee in any financial institution within or without the State.

(2)   Credit to a payroll card account directly or indirectly established by an employer in a federally insured depository institution to which electronic fund transfers of the employee’s wages, salary, or other employee compensation is made on a recurring basis, other than a checking, savings, or other deposit account described in subdivision (1) of this subsection, provided all the following:

(A)  The employer provides the employee written disclosure in plain language, in at least 10-point type of both the following:

(i)  All the employee’s wage payment options.

(ii)  The terms and conditions of the payroll card account option, including a complete list of all known fees that may be deducted from the employee’s payroll card account by the employer or the card issuer and whether third parties may assess fees in addition to the fees assessed by the employer or issuer.

(B)  Copies of the written disclosures required by subdivisions (A) and (F) of this subdivision (c)(2) and by subsection (d) of this section shall be provided to the employee in the employee’s primary language or in a language the employee understands.

(C)  The employee voluntarily consents in writing to payment of wages by payroll card account after receiving the disclosures described in subdivision (A) of this subdivision (c)(2), and this consent is not a condition of hire or continued employment.

(D)  The employer ensures that the payroll card account provides that during each pay period, the employee has at least three free withdrawals from the payroll card, one of which permits withdrawal of the full amount of the balance at a federally insured depository institution or other location convenient to the place of employment.

(E)  None of the employer’s costs associated with the payroll card account are passed on to the employee, and the employer shall not receive any financial remuneration for using the pay card at the employee’s expense.

(F)  (i) At least 21 days before any change takes effect, the employer provides the employee with written notice in plain language, in at least 10 point type, of the following:

(I)  any change to any of the terms and conditions of the payroll card account, including any changes in the itemized list of fees;

(II)  the employee’s right to discontinue receipt of wages by a payroll card account at any time and without penalty.

(ii)  The employer may not charge the employee any additional fees until the employer has notified the employee in writing of the changes.

(G)  The employer provides the employee the option to discontinue receipt of wages by a payroll card account at any time and without penalty to the employee.

(H)  The payroll card issued to the employee shall be a branded-type payroll card that complies with both the following:

(i)  Can be used at a PIN-based or a signature-based outlet.

(ii)  The payroll card agreement prevents withdrawals in excess of the account balance and to the extent possible protects against the account being overdrawn.

(I)  The employer ensures that the payroll card account provides one free replacement payroll card per year at no cost to the employee before the card’s expiration date. A replacement card need not be provided if the card has been inactive for a period of at least 12 months or the employee is no longer employed by the employer.

(J)  A nonbranded payroll card may be issued for temporary purposes and shall be valid for no more than 60 days.

(K)  The payroll card account shall not be linked to any form of credit, including a loan against future pay or a cash advance on future pay.

(L)  The employer shall not charge the employee an initiation, loading, or other participatory fee to receive wages payable in an electronic fund transfer to a payroll card account, with the exception of the cost required to replace a lost, stolen, or damaged payroll card.

(M)  The employer shall ensure that the payroll card account provides to the employee, upon the employee’s written or oral request, one free written transaction history each month which includes all deposits, withdrawals, deductions, or charges by any entity from or to the employee’s payroll card account for the preceding 60 days. The employer shall also ensure that the account allows the employee to elect to receive the monthly transaction history by electronic mail. 21 Vt. Stat. § 342(c).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Virginia, provided employees consent in writing to receiving direct deposit. Consenting to this method of payment must not be a condition of employment.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Virginia, except for employees hired after January 1, 2010 if the employee fails to designate an account to be used for direct deposit.

What if the employee requests a paper check?

In Virginia, a request for a paper check by an employee would constitute a written objection to receiving direct deposit via payroll card and the employer must provide one of the other acceptable forms of payment.

What are the state requirements for accessing wages?

In Virginia, employees must be given the option to choose the financial institution to which their wages are deposited.

In Virginia, employees must be able to make one free withdrawal or transfer up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

Employers in Virginia must offer a pay stub that shows gross wages and deductions which can be printed at no cost to the employee.

What are the state regulations for payroll card fees?

In Virginia, employees cannot be charged service, processing, administrative, or withdrawal fees.

References

Payment of wages or salaries shall be (i) in lawful money of the United States, (ii) by check payable at face value upon demand in lawful money of the United States, (iii) by electronic automated fund transfer in lawful money of the United States into an account in the name of the employee at a financial institution designated by the employee, or (iv) by credit to a prepaid debit card or card account from which the employee is able to withdraw or transfer funds with full written disclosure by the employer of any applicable fees and affirmative consent thereto by the employee. However, an employer that elects not to pay wages or salaries in accordance with clause (i) or (ii) to an employee who is hired after January 1, 2010, shall be permitted to pay wages or salaries by credit to a prepaid debit card or card account in accordance with clause (iv), even though such employee has not affirmatively consented thereto, if the employee fails to designate an account at a financial institution in accordance with clause (iii) and the employer arranges for such card or card account to be issued through a network system through which the employee shall have the ability to make at least one free withdrawal or transfer per pay period, which withdrawal may be for any sum in such card or card account as the employee may elect, using such card or card account at financial institutions participating in such network system. Va. Code § 40.1-29(B).

Employers are required to provide pay stubs or any similar method to reflect an employee’s gross wages and types and amounts of deductions from wages upon the written request of an employee. An employer must furnish an employee a statement of the gross wages earned by the employee during any specified pay period and the amount and purpose of any deductions made. Virginia Department of Labor and Industry, Field Operations Manual, Ch. 10, p. 1, available at http://townhall.virginia.gov/L/GetFile.cfm?File=GuidanceDocs\181\GDoc_DOLI_5539_v2.pdf (last revised April 2015).

Employers may utilize direct deposit for payment of wages to an employee provided the

following guidelines are adhered to:

1. Advanced, written consent of the employee is secured.

2. Consent is voluntarily given, not made a condition of employment or continuance therein.

3. Consent may be revoked by the employee in writing.

4. The employee is allowed to designate the bank or financial institution and the type of account to which wages are to be deposited.

5. Written consent is maintained on file by the employer.

6. Funds are made available in the designated account on or before the date the employee would have received the wages absent his or her consent to participate in the direct deposit system.

7. No service, processing, or administrative charge is incurred by the employee. Virginia Department of Labor and Industry, Field Operations Manual, Ch. 10, p.1, available at http://townhall.virginia.gov/L/GetFile.cfm?File=GuidanceDocs\181\GDoc_DOLI_5539_v2.pdf (last revised April 2015).

Employers cannot force an employee to participate in direct deposit of his or her wages or any other payment system which does not allow for the employee to receive cash or a check made payable to him or her. Virginia Department of Labor and Industry, Field Operations Manual, Ch. 10, p. 1, available at http://townhall.virginia.gov/L/GetFile.cfm?File=GuidanceDocs\181\GDoc_DOLI_5539_v2.pdf (last revised April 2015).

Employers can now pay wages by using pay cards, provided they comply with the following:

1. The wages are deposited into a trust account on which the employee is a named beneficiary.

2. There are no fees associated with withdrawing the wages from the pay card.

3. The employee is not required to maintain an account at any financial institution.

4. This method of payment can only be offered to the employee, but not required, unless the employee has failed to designate a financial institute to which wages may be paid electronically and the employee is employed at any facility where the operation of amusement devices is authorized pursuant to a certificate of inspection issued under § 36-98.3 and any regulations promulgated thereunder. Virginia Department of Labor and Industry, Field Operations Manual, Ch. 10, p. 1, available at http://townhall.virginia.gov/L/GetFile.cfm?File=GuidanceDocs\181\GDoc_DOLI_5539_v2.pdf (last revised April 2015).

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Washington, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

Employers may authorize full deployment of payroll cards so long the employee may access wages without any fees or costs. Otherwise, the employer must provide an alternative that has no fees for accessing wages.

What if the employee requests a paper check?

Washington does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

In Washington, employees cannot be charged a fee for receiving wages by electronic means.

What are the state regulations for payroll card fees?

In Washington, employers may not charge the employee any fees for adding funds to their payroll card via ACH direct deposit, including initiation fees, participation fees or loading fees.

References

“Wage” means compensation due to an employee by reason of employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director. Rev. Code Wash. § 49.46.010(7).

Can a business require workers to sign up for direct deposit of their pay?

Yes, as long as there is no cost to the workers.

Can a business pay their employees using a debit card or prepaid payroll card?

Yes, but if there are fees for using the cards, the employer must provide an alternative that allows employees to access their wages without any fees or costs associated with the payroll transaction.

Wa. Dept. of Labor and Industries, Questions re Getting Paid and Administrative Policy ES.A.2, re-issued 7/15/2014.

Can you require an employee to receive wages via direct deposit?

Employees must consent in writing to receiving their wages on a payroll card in West Virginia. Consenting to this method of payment must not be a condition of employment.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in West Virginia.

What if the employee requests a paper check?

West Virginia does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

There are no specific requirements for accessing wages in West Virginia, but it is a recommended best practice that employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

Employees may not be charged excessive user fees or other charges to receive their wages.

References

Payment… shall be made:

(1) In lawful money of the United States;

(2) By cash order…;

(3) By deposit or electronic transfer of immediately available funds into an employee’s payroll card account in a federally insured depository institution. The term “payroll card account” means an account in a federally insured depository institution that is directly or indirectly established through an employer and to which electronic fund transfers of the employee’s wages, salary, commissions or other compensation are made on a recurring basis, whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution or another person. “Payroll card” means a card, code or combination thereof or other means of access to an employee’s payroll card account, by which the employee may initiate electronic fund transfers or use a payroll card to make purchases or payments. Payment of employee compensation by means of a payroll card must be agreed upon in writing by both the person, form or corporation paying the compensation and the person being compensated.

(4) By any method of depositing immediately available funds in an employee’s demand or time account in a bank, credit union or savings and loan institution that may be agreed upon in writing between the employee and such person, firm or corporation, which agreement shall specifically identify the employee, the financial institution, the type of account and the account number: Provided, That nothing herein contained shall be construed in a manner to require any person, firm or corporation to pay employees by depositing funds in a financial institution. W. Va. Code § 21-5-3(b).

In lieu of lawful money of the United States, any person, firm or corporation may compensate employees for services by cash order which may include checks, direct deposits or money orders on banks convenient to the place of employment where suitable arrangements have been made for the cashing of the checks by employees or deposit of funds for employees for the full amount of wages. W. Va. Code § 21-5-4(a).

Direct Deposit

In order to use direct deposit as a method of meeting payroll, it must be agreed upon, in writing, by both the employee and employer.

The agreement must specifically identify the employee, the financial  institution,  the type of account and the account number. No employer or existing employee can be required to use or accept direct deposit as a method of receiving wages.

Payroll Card Accounts (debit cards)

Payment… shall be made:

(1) In lawful money of the United States;

(2) By cash order…;

(3) By deposit or electronic transfer of immediately available funds into an employee’s payroll card account in a federally insured depository institution. The term “payroll card account” means an account in a federally insured depository institution that is directly or indirectly established through an employer and to which electronic fund transfers of the employee’s wages, salary, commissions or other compensation are made on a recurring basis, whether the account is operated or managed by the employer, a third-party payroll processor, a depository institution or another person. “Payroll card” means a card, code or combination thereof or other means of access to an employee’s payroll card account, by which the employee may initiate electronic fund transfers or use a payroll card to make purchases or payments. Payment of employee compensation by means of a payroll card must be agreed upon in writing by both the person, form or corporation paying the compensation and the person being compensated.

(4) By any method of depositing immediately available funds in an employee’s demand or time account in a bank, credit union or savings and loan institution that may be agreed upon in writing between the employee and such person, firm or corporation, which agreement shall specifically identify the employee, the financial institution, the type of account and the account number: Provided, That nothing herein contained shall be construed in a manner to require any person, firm or corporation to pay employees by depositing funds in a financial institution. W. Va. Code § 21-5-3(b).

In lieu of lawful money of the United States, any person, firm or corporation may compensate employees for services by cash order which may include checks, direct deposits or money orders on banks convenient to the place of employment where suitable arrangements have been made for the cashing of the checks by employees or deposit of funds for employees for the full amount of wages. W. Va. Code § 21-5-4(a).

Direct Deposit

In order to use direct deposit as a method of meeting payroll, it must be agreed upon, in writing, by both the employee and employer.

The agreement must specifically identify the employee, the financial  institution, the type of account and the account number. No employer or existing employee can be required to use or accept direct deposit as a method of receiving wages.

Payroll Card Accounts (debit cards)

As of July 7, 2008, the use of employee payroll accounts (debit cards) became an acceptable method of meeting payroll in West Virginia.

Payment of employee compensation by means of a payroll debit card account must be agreed upon, in writing, by both parties.

No employer or existing employee can be required to use or accept payroll debit card accounts as a method of receiving wages.

Employees may not be charged excessive user fees or other charges just for the privilege of receiving their wages. West Virginia Department of Labor, information Sheet on Direct Deposit & Payroll Card Accounts, available at http://labor.wv.gov/Wage-Hour/Wage_Collection/Employees/Documents/Direct_Deposit.pdf.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Wisconsin, provided employees are not subject to deposit-related fees.

Does the employee need to consent to receiving their wages on a payroll card?

There is no specific paycard legislation in Wisconsin, but it is a recommended best practice to obtain employee consent to receiving wages via paycard.

What if the employee requests a paper check?

In Wisconsin, employers are not obligated to provide paper checks.

What are the state requirements for accessing wages?

The employee must be able to collect his or her wages at a bank in Wisconsin.

What are the state regulations for payroll card fees?

In Wisconsin, where direct deposit is mandatory, employers may not charge the employee any fees for adding funds to their payroll card via ACH direct deposit, including initiation fees, participation fees or loading fees. Fees are permitted where employees consent to receive wages via direct deposit.

There are no specific regulations in Wisconsin regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

Employers in Wisconsin must offer a pay stub which shows the rate of pay, hours worked, and the amount of and reason for each deduction.

References

All persons paying wages in time checks or paper, other than legal money, shall make those time checks or that paper payable in some designated place of business in the county in which the work was performed or at the office of the person paying the wages if within this state, or at any bank within this state. Wis. Stat. § 103.45.

Mandatory Direct Deposit

Mandatory direct deposit systems are permitted under certain circumstances:

The employee must be able to collect his or her wages at a bank or facility in the State of Wisconsin.

The employee must receive all of his or her wages, and cannot be made to incur any charges to receive them. If an employee uses an existing bank account, generally this will cause no problem. If an employee does not bank, and has to establish an account solely for the purpose of receiving wages, all fees must be covered by the employer.

Voluntary Direct Deposit

If an employer chooses to institute a direct deposit pay system that is available at the option of the employee, it is immaterial whether or not there are fees associated with obtaining the wages. If the employee chooses to use the direct deposit system, it is assumed that the employee has agreed to pay these fees for the convenience and security of having the wages placed directly into his or her bank account.

Direct Deposit as a Condition of Employment

Because this issue is not addressed in the statutes, an employer may make employee participation in a direct deposit pay program a condition of employment. An employer may also require that established employees participate in a direct deposit system as a condition of continued employment. Wisconsin Department of Workforce Development, Direct Deposit of Wages and Wisconsin Wage Payment and Collection Law

https://dwd.wisconsin.gov/er/labor_standards/direct_deposit.htm.

Direct Deposit Wage Payments

An employer has the right to require its employees to participate in a direct deposit program. There cannot be any cost to the employee to participate in a mandatory program. Even if wages are deposited directly, the employee must still receive a check stub showing the rate of pay, hours worked, and the amount of and reason for each deduction. Wage Payment and Collection Law, Equal Rights Publication ERD-8784-PWEB

https://dwd.wisconsin.gov/dwd/publications/erd/erd_8784_p.htm.

Can you require an employee to receive wages via direct deposit?

Employers can authorize full deployment of direct deposit in Wyoming, provided employees consent in writing to receiving direct deposit.

Does the employee need to consent to receiving their wages on a payroll card?

Employees must consent in writing to receiving their wages on a payroll card in Wyoming.

What if the employee requests a paper check?

Wyoming does not have specific laws governing reception of wages via direct deposit and paper checks. However, it is a recommended best practice to provide multiple options to employees.

What are the state requirements for accessing wages?

In Wyoming, employees must be able to make one free withdrawal up to and including the full amount of their entire net wages at least once per pay period, by a free transaction from the employee’s payroll card account.

What are the state regulations for payroll card fees?

There are no specific regulations in Wyoming regarding payroll card fees, however, federal regulations require that fees to use the card do not place the employee in a position where they would be receiving less than minimum wage.

References

Every employer shall, at the time of each payment of wages, furnish each of his employees with a detachable part of the check, draft or voucher, paying the employees’ wages, giving an itemized statement in writing showing all deductions made from such wages. If the employer does not make his payroll payments in the aforementioned manner, then he shall provide such itemized statement on a slip attached to such payment. Nothing in W.S. 27-4-101 through 27-4-103 shall be construed to prohibit an employer from depositing wages due or to become due or an advance on wages to be earned, in an account in any bank, savings and loan association, credit union or other financial institution authorized by the United States or one (1) of the several states to receive deposits in the United States if the employee has voluntarily authorized such deposit. Wyo. Stat. § 27-4-101(b).

Wyoming Department of Workforce Services has advised informally that employees must provide consent and have at least one opportunity each pay period to withdraw their wages without penalty or fee.