2011 state laws governing direct deposit and pay cards — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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2011 state laws governing direct deposit and pay cards

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in Human Resources

Direct deposit made life easier for employees, eliminating the Friday lunchtime run to the bank to cash paychecks. Pay cards take it a step further by marrying convenient deposits with ease of spending.

Pay cards are reloadable, prepaid bank cards—not credit cards. Each pay period, the employee’s pay is automatically loaded onto the card and available to the employee on payday.

Most states prohibit employers from mandating that employees receive their pay electronically—the banking basis of pay cards. Similarly, only a few states let employers mandate direct deposit. Many states also forbid employers and banks from charging a fee if employees decide to cash out all their pay with one transaction.

Here's a brief summary of state laws affecting direct deposit and pay cards.

Note: States not listed have no laws governing direct deposit or pay cards


  • Direct deposit: Voluntary
  • Pay cards: No law


  • Direct deposit: Vo...(register to read more)

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