Direct Deposit Laws by State: New Quick Reference Chart Added

Author: Rena Pirsos, XpertHR Legal Editor

Most employers offer direct deposit as an alternative method of wage payment because it is generally more secure, efficient and cost-effective than paying employees in cash or with paper paychecks. Although federal regulations set the general rules for electronic payments such as direct deposit, many states extend additional protections to employees, such as prohibitions on mandatory direct deposit or added employee fees, or requirements to provide a pay statement for each deposit.

To help employers comply with the state direct deposit requirements, XpertHR has added a Direct Deposit Laws by State chart to the Quick Reference tool. This chart includes links to Employment Law Manual sections that provide the basic federal rules as well as more detailed state information.