Are written authorizations required for direct deposits?
Author: Ryan F. Donovan
Not under federal law, but it may be required by state law. Even so, an employer should use a written authorization form with employee acknowledgement to keep as a record. Before accepting the form, the employer should make sure it is legible. Any confusion about what numbers are on the form should be addressed before finalizing the direct deposit information. Failure to do this can lead to an employee not being paid in a timely manner, or, worse yet, the entirely wrong person getting the money. If money ends up going to the wrong account, the employer may or may not be able to get it back.