States mandating direct deposit dating arab sites
Below we answer this and other common questions about direct deposit. Typically, the employee's consent must be in writing.While a few states permit mandatory direct deposit, states generally also list exceptions to the requirement.In Arizona, an employee must either specify a bank at which he or she wishes to receive direct deposit payments or agree to receive salary payments in electronic paycard form.Arkansas requires employees to specify in writing that they wish to receive checks if their employer has instituted direct deposit. Employers pay employees by transferring money directly to the employees’ bank accounts.It’s convenient for small business owners, who save check printing costs and bank check processing fees, and employees have access to the funds on payday instead of waiting until their paychecks clear.
But, can you require employees to enroll in direct deposit?
Well, there are not only federal laws businesses need to follow; there are also state laws and the potential for unintentional discrimination (more on that later). Some states allow employers to require employees to accept direct deposit of wages and bonuses.
Others allow employees to choose between direct deposit and traditional paychecks.
We’ve created a chart that you can use to help you keep it all straight!
We would like to require employees to accept pay via direct deposit. The Fair Labor Standards Act does not directly answer this question. As an alternative, the employer may make arrangements for employees to cash a check drawn against the employer’s payroll deposit account, if it is at a place convenient to their employment and without charge to them. (Note – we strongly recommend against paying employees in cash.) Most states also have laws that govern when and how employers must pay employees.