Understand your state law on pay cards, direct deposit

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in Compensation and Benefits,Employment Law,Human Resources

More employers are offering to let ­workers collect their pay on reloadable, prepaid bank cards. The cards allow workers to make purchases anywhere they can use credit or debit cards, plus get cash at ATMs. Many card services provide checking accounts that employees can use to facilitate online bill paying.

But know your state law: Most states prohibit employers from mandating that workers receive pay electronically. Similarly, only a few states let employers man­­date direct deposit. To learn the law in states where you operate, go to www.theHRSpecialist.com/epaylaws.

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