Join Date: Jun 2006; Posts: 12665; Share Tweet #2. Yes, in some states. 820 ILCS 115/4 and 56 … Suite 200 For example, in Utah, an employee cannot refuse payment of wages via direct deposit if: At the very least, the state may adopt the provisions of Regulation E. If the state extends additional protections to employees, the employer must use the law offering the employee the most benefits. More than 10 years ago, I was able to receive regular checks mailed to my home address. The Electronic Fund Transfer Act (EFTA), also known as federal Regulation E, permits employers to make direct deposit mandatory, as long as the employee is able to choose the bank that his or her wages will be deposited into. Can employers make … Do Employee Engagement Surveys Really Work? While a handful of states permit employers to mandate direct deposit (usually with some restrictions), most, like Illinois, allow direct deposit only with the agreement of the employee. In this manner, can direct deposit be mandatory? In some states that allow employers to require direct deposit, the rules are very specific. Virginia Beach, VA 23464. Ohio 06-03-2011, 12:57 PM . 2 attorney … The Electronic Fund Transfer Act (EFTA), also known as federal Regulation E, permits employers to make direct deposit mandatory, as long as the employee is able to choose the bank that his or her wages will be deposited into. They told me it doesn't matter- I have to get one. Alternatively, employers can choose the … And if the state does not have laws on direct deposit, federal law applies. Sponsored Listings. The FDIC has interpreted the above section to mean that an employer may not require its employees to receive their salary by direct deposit to a particular bank. Granting such consent cannot be … Alternatively, employers can choose the bank that employees must use for direct deposit. Payment upon Separation from Employment. This opinion letter overturns a former ruling, that Oklahoma employers could not require payment by direct deposit. Can an employer in PA make direct deposit mandatory? How To Use Videos for Benefits Communications. Of course, this is just a summary of complex state rules, which may contain additional provisions and exceptions, and also which can change frequently. Senior Member. The Upside of Integrating Timekeeping, Payroll and Accounting, Compliance Requirements for a Remote Workforce. A good rule of thumb is to require written authorization from the employee, even if state law doesn’t say to. (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. Tags: None. 06-03-2011, 03:11 PM. Direct deposit is a popular paperless payment method. In some states, an employer can make direct deposit mandatory, provided certain stipulations are met. In fact, receiving direct deposit can be used as a prerequisite for hiring in many of states provided you comply with the following requirements: You don’t require employees to use a specific bank. Back To Top . Paper paychecks will no longer be issued. Alternatively, if at least two-thirds of company employees agree to accept payroll direct deposits. 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