Is mandating direct deposit legal
Before requiring an employee, as a condition of employment, to go on direct deposit employers should consult with an employment attorney.The Agency or a court may conclude, for public policy reasons, that making direct deposit mandatory is improper even at the pre-employment stage.(C) A person in a covered position who has not timely complied with the requirements of paragraph (B) of this rule, who has failed to timely comply with all the requirements of the financial institution designated by the director of budget and management or the department of administrative services as required by paragraph (D) of this rule, or who has failed to timely maintain an authorization for the direct deposit of the employee's compensation as required by paragraph (E) of this rule shall be subject to progressive discipline for cause, up to and including removal.Any disciplinary actions against such a person for any violation of this rule shall be done in accordance with section 124.34 of the Revised Code or the applicable collective bargaining agreement.In 2003, the Texas Payday Law was amended to include a provision for direct deposit.The amendment allows mandatory direct deposit for employees who keep appropriate bank accounts. As of the time of publication, you may opt to pay via direct deposit if you give employees a minimum of 60 days advance notice in writing and obtain the financial information needed from the employee to implement the direct deposit account.
The United States Department of Labor, which oversees federal labor laws, says paying wages via direct deposit is acceptable provided the employee has the option of being paid by cash or check.(D) The appointing authority of a person in a covered position who has failed to authorize the direct deposit of the person's compensation into a financial institution of the person's choice as set forth in paragraph (B) of this rule shall cause the person's compensation to be directly deposited into a financial institution designated by the director of budget and management for the benefit of the person.A person in a covered position shall comply with all the requirements of the financial institution designated by the auditor of state under this paragraph and the department of administrative services if that person's compensation is deposited into said financial institution as a result of this paragraph.Florida does not have any laws requiring employers to provide employees at the time of payment any notice of wages paid, wage rates, deductions, or other wage payment information, except for employers operating labor pools.Labor pool employers must provide day laborers a written itemized statement showing in detail each deduction made from the wages. Chapter 448.24 Florida does not have any laws requiring an employer to keep any employment-related documents.
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As a small business owner in Texas, you may want to pay your employees via direct deposit rather than actual paychecks.