States mandating direct deposit
employees receive their paycheck via direct deposit, according to an American Payroll Association survey.But can this useful, popular deposit method be a requirement for your employees?
However, a wage reduction can only be applied to hours worked after the change and cannot be applied to hours already worked.The lack of a law prohibiting deductions likely means an employer can withhold or deduct wages from an employees pay check for: In accordance with federal law, an employer may not make deductions for any of the above-listed items if it would cause the employee to earn less than federal minimum wage for the period in which the deduction was made. Florida does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment, except for employers operating a labor pool.Labor pool employers may not charge day laborers for any safety equipment, clothing, accessories, or any other required items. Chapter 448.24 Florida does not have any laws prohibiting an employer from requiring an applicant or employee to pay the cost of a medical examination or the cost of furnishing any records required by the employer as a condition of employment.Expert: Shirley Mc Allister, CPP, PHR - 3/18/2009 Question You stated that most of the states that have mandatory direct deposit have stipulations that the employee must choose their financial institution and must be charged no additional fees. cu,ar Answer They all stipulate that he employee must choose the financial institution. Honor Award for child mentoring service through RSVP and National Mentoring A "Pat on the Back" award for outstanding leadership as a Youth Group Leader by "The Salvation Army." Runner up for Employee of the Year at my Company twice and Employee of the month 4 times.20 states follow the federal rules and the rest have their own rules. BNAEducation/Credentials Boise State University Human Resource Certificate Program PHR through SHRM CPP through American Payroll Association Payroll Administrator and Payroll Supervisor certification through Canadian Payroll Association Published writer of Payroll and Benefit articles in a payroll Publication 25 years experience in an International Company Awards and Honors Citation of Merit 8 years in a row for hotline service for A. Past/Present Clients I used to answer questions on when they had a similar quesition and answer section.Federal law requires every employer covered by the Fair Labor Standards Act (FLSA) to keep certain records for each covered, nonexempt worker, for at least 3 years. Florida does not have any laws requiring employers to provide employees, whether at hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe benefits, or other terms and conditions of employment.
There are many benefits of having direct deposit: saving employees a trip to the bank, reducing employer costs on paper checks and cutting down on paper waste.
Also, it is my understanding that some states may allow you to offer direct deposit or a debit or atm card as an option for electronic pay and this would exclude them from the "mandating direct deposit" rule because they are offering an option. Unfortunately, I don't know of a free source of that information. However, the APA has a survey of direct deposit practices at: for your help. This was exactly what I was looking for, yet I looked at the properties on the pdf file and it had been last updated in 2002.
We called the company that owns the website and had the chance to chat with the owner who indicated that these laws do not change very freequently and should be ok to use as a guide.
I have been the trustee for our 401K plan for Retirement benefits and our 125 Cafeteria Plan for Health Insurance benefits.
Organizations SHRM, National APA, National DOLEA, State National Mentoring Network I.
The states that do not state that the employee must be charged no additional fees and either do not have a ruling or allow mandatory direct deposit are: Alabama Massachusetts Mississippi Missouri North Carolina Ohio South Dakota This information is from the American Payroll Association "The Payroll Source" page 5-12, 5-13, 5-14. and Canadian but have knowledge of the internationals. I have worked in the Human Resources area with high emphasis on compensation and benefits for 25 years at the same company.