• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Can we require employees to use direct deposit?

by on
in Office Management,Payroll Management

Q. Can a Texas employer require employees to accept payment of wages through an electronic transfer of funds?

A. Most states require employee consent before an em­­ployer may pay wages by electronic funds transfer. Moreover, a few states prohibit employers from denying employment to an applicant or discharging an employee based on the applicant or employee’s refusal to accept payment of wages by electronic funds transfer.

In Texas, employers are permitted to pay wages in one of three ways:

  • In U.S. currency
  • By a written instrument issued by the employer that is negotiable on demand at full face value for U.S. currency
  • By the electronic transfer of funds.   

A worker’s consent as to the method of payment is apparently not required.

As a practical matter, however, if you choose to pay wages only through electronic funds transfer, you should disclose this information to workers and first attempt to secure their consent.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/31708/can-we-require-employees-to-use-direct-deposit "

Leave a Comment