Direct Deposit of Wages Direct Deposit of Wages

Mandating direct deposit for public employees, federal rule

B Except as provided in paragraph C of this rule, all benefits or payments paid in the form of a monthly annuity to individuals with a United States address on file with the public employees retirement system shall be paid by direct deposit, which is an electronic fund transfer directly to an individual's account at a financial institution.

Do not use a payroll debit card that charges employees a fee each time they use it; this may create issues with the Texas Payday Law and may violate federal minimum wage laws. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance.

Can Employers Make Direct Deposit Mandatory?

We urge you to check the applicable statutes and administrative rules yourself and to consult with legal counsel prior to taking action that may invoke employee rights or employer responsibilities or omitting to act when required by law to act.

Managing DIrect Deposit Account. The Agency or a court may conclude, for public policy reasons, that making direct deposit mandatory is improper even at the pre-employment stage. If you choose to use direct deposit, you will need to give your employee a statement showing how much is deducted from their paycheck.

Selected Sections of Labor Code: However, some employees prefer to receive paper checks on payday to handle themselves. Voluntary Direct Deposit If an employer chooses to institute a direct deposit pay system that is available at the option of the employee, it is immaterial whether or not there are fees associated with obtaining the wages.

Federal Rule 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.

Enrollment forms are available via Employee Self Service: However, Texas law does not supersede any federal law or objections the EEOC may have regarding the mandatory system.

The statement can be online or on paper. This communication is not an agency order. Previously, employers and employees had to agree to authorize direct deposit but sinceemployers can have direct deposit as the default.

The employee must be able to choose the bank for direct deposit If the employer chooses the bank, they must offer another form of payment for the employee, such as a paper check Keep in mind that state regulation may prevent employers from choosing the bank for direct deposit.

The employee must receive all of his or her wages, and cannot be made to incur any charges to receive them. Can employers make direct deposit mandatory?