Can direct deposit be compulsory? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Can direct deposit be compulsory?

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in Employment Law,Human Resources

Q. Can we require employees to use direct deposit?

A. It depends entirely upon where your employees are located. In Indiana, employers are free to require direct deposit. (Note, however, that an employer may not withhold pay merely because an employee has not yet set up a direct deposit account.) Other states (Illinois, for example) prohibit this practice. Therefore, if your company does business in several states, check with your employment attorney to determine the laws that apply in each location.

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