The HR Specialist

2013 State Direct Deposit/Paycard Laws

04/11/2013

State laws usually require that employees voluntarily participate in direct deposit or paycard programs. States may also allow paycard vendors to charge em­ployees fees, beginning with the second transaction. The chart below summarizes the states’ direct deposit/paycard rules. “Mandatory” means that a state allows you to make e-payment a condition of employment, if you choose. States that don’t have laws aren’t included. In all cases, contact your state labor department for the full story.

Alaska

Direct Deposit: Voluntary

Paycards: No law

 

Arizona

Direct Deposit: Voluntary; employees get 1 free withdrawal, pay statement

Paycards: May be mandatory; alternative to direct deposit; employees get free access to full pay; disclosure required

 

Arkansas

Direct Deposit: Voluntary; employees opt out in writing

Paycards: No law

 

California

Direct Deposit: Voluntary; employees pick in-state bank

Paycards: Voluntary; employees get 1 free transaction

 

Colorado

Direct Deposit:  Voluntary

Paycards: Voluntary; employees get free access to full pay or may choose another payment method

 

Connecticut

Direct Deposit: Voluntary

Paycards: No law

 

Delaware

Direct Deposit: Voluntary

Paycards: Voluntary; employees get free access to full pay

 

District of Columbia

Direct Deposit: Voluntary

Paycards: No law

 

Florida

Direct Deposit: Voluntary

Paycards: Voluntary; employees get free access to full pay; in-state bank

 

Georgia

Direct Deposit: Voluntary

Paycards: No law

 

Hawaii

Direct Deposit: Voluntary; disclosure required

Paycards: No law

 

Idaho

Direct Deposit: Voluntary

Paycards: No law


Illinois

Direct Deposit: Voluntary

Paycards: No law

 

Indiana

Direct Deposit: May be mandatory

Paycards: No law

 

Iowa

Direct Deposit: May be mandatory for new hires; employees incur no bank charges; otherwise voluntary

Paycards: Voluntary; employees get free access to full pay

 

Kansas

Direct Deposit: May be mandatory; alternative pay method must be offered; disclosure required

Paycards: May be mandatory; alternative to direct deposit; employees get free access to full pay; disclosure required

 

Kentucky

Direct Deposit: May be mandatory; employees withdraw entire net pay without charge

Paycards: No law

 

Louisiana

Direct Deposit: May be mandatory; employees incur no fees

Paycards: No law

 

Maine

Direct Deposit: Voluntary

Paycards: Voluntary; employees get free access to full pay

 

Maryland

Direct Deposit: Voluntary

Paycards: Voluntary; disclose fees

 

Massachusetts

Direct Deposit: Voluntary; employee picks bank

Paycards: No law

 

Michigan

Direct Deposit: May be mandatory; employees pick bank

Paycards: May be mandatory; alternative to direct deposit; employees get 1 free transaction

 

Minnesota

Direct Deposit: May be mandatory unless employees object in writing

Paycards: Voluntary; employees get free access to full pay; disclosure required; employers register with the state

 

Montana

Direct Deposit: Voluntary

Paycards: Voluntary; employees get free access to full pay; disclosure required

 

Nevada

Direct Deposit: Voluntary; employees get 1 free transaction, incur no fees

Paycards: Voluntary; employees get free access to full pay; disclosure required 

 

New Hampshire

Direct Deposit: Voluntary; employees incur no fees

Paycards: Voluntary; employees get free access to full pay; disclosure required

 

New Jersey

Direct Deposit: Voluntary

Paycards: Voluntary; employees consent in writing; get free access to full pay; disclosure required

 

New Mexico

Direct Deposit: Voluntary

Paycards: No law


New York

Direct Deposit: Voluntary; may be mandatory for exempts earning more than $900 a week

Paycards: Voluntary for nonexempts; employees get free access to full pay 

 

North Carolina

Direct Deposit: May be mandatory; employees choose bank

Paycards: May be mandatory; employees get free access to full pay; if voluntary, fees begin on 2nd withdrawal

 

North Dakota

Direct Deposit: Voluntary

Paycards: Voluntary; employees incur no fees

 

Oklahoma

Direct Deposit: May be mandatory if employees pick bank, otherwise voluntary

Paycards: Voluntary; employees incur no costs

 

Oregon

Direct Deposit: Voluntary; employees incur no fees

Paycards: Voluntary; employees get free access to full pay

 

Pennsylvania

Direct Deposit: Voluntary; employees get record of deposits

Paycards: No law

 

Rhode Island

Direct Deposit: Voluntary

Paycards: No law

 

South Carolina

Direct Deposit: Voluntary; employees get 1 free withdrawal

Paycards: No law

 

South Dakota

Direct Deposit: Voluntary

Paycards: No law

 

Tennessee

Direct Deposit: May be mandatory; employees pick bank

Paycards: May be mandatory; alternative to direct deposit; employees get 1 free transaction; disclosure required

 

Texas

Direct Deposit: May be mandatory; employer gives 60 days' notice

Paycards: Voluntary; employees get free access to full pay

 

Utah

Direct Deposit: May be mandatory, if for preceding year employer deposited at least $250,000 in federal taxes and 2/3 of employees elect direct deposit

Paycards: Voluntary; employees get free access to full pay

 

Vermont

Direct Deposit: Voluntary

Paycards: Voluntary; employees get 3 free transactions; disclosure required

 

Virginia

Direct Deposit: Voluntary; employees incur no fees

Paycards: May be mandatory for amusement facility employees and all new hires

 

Washington

Direct Deposit: May be mandatory if employees incur no fees

Paycards: No law


West Virginia

Direct Deposit: Voluntary

Paycards: Voluntary; employees agree in writing 

 

Wisconsin

Direct Deposit: May be mandatory, if in-state bank; employees incur no fees

Paycards: No law


Wyoming

Direct Deposit: Voluntary

Paycards: No law



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