Can an employer require an employee to accept a paycard?

Author: Alice Gilman

Generally, no. Federal Regulation E, which governs electronic transactions, including direct deposits and paycards, as well as most state wage payment laws require an employer to provide an employee with a choice between being paid by direct deposit or a paycard before using either method. If the employee refuses direct deposit, the employer may then pay the employee by paycard. However, most state wage payment laws are more restrictive and require employers to continue to offer the paper paycheck option.