States mandating direct deposit

This chart summarizes the states’ direct deposit/paycard rules in 2016.

“Mandatory” means that a state allows you to make e-payment a condition of employment, if you choose.

But some states extend additional protections to employees, such as prohibitions on mandatory direct deposit or added employee fees, or requirements to provide a pay statement for each deposit.

States that do not have a direct deposit law are marked N/A.

In the absence of a state law, federal Regulation E may be followed.

States usually require that employees voluntarily participate in electronic pay programs.

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There are two categories of pay cards: Branded pay cards include Visa, Master Card, American Express, and Discover.Instead, employers can electronically load wages, regardless of where they or their employees are.As more employers and employees come to recognize the benefits of pay cards, the more popular this payment option becomes.State wage payment laws specify the wage payment methods an employer may offer to employees - cash, check, direct deposit or paycard.At a minimum, most state wage payment laws adopt Regulation E's provisions.

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