Don’t Require Direct Deposit — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Don’t Require Direct Deposit

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Q. Can a business require employees to use direct deposit of paychecks? —N.C., Kansas

A. No, you can't require it. In fact, many states have laws prohibiting mandatory direct deposit. But you can offer it as an option. Labor laws say that paying wages through direct deposit is perfectly acceptable as long as employees have the option of being paid by check or cash.

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