Mandating direct deposit
SOLE Visa® Payroll Cardholders can make a bank teller withdrawal at any Visa member bank once per pay period at no cost.Opt-Out: Employers can authorize full deployment of direct deposit for employees.All such fees shall be deducted from the person's compensation by the financial institution designated by the director of budget and management as part of the administration of such account by said financial institution.(G) An appointing authority desiring to fill a covered position shall list on all job postings for such covered position, regardless of the format of the posting, that authorizing a financial institution for the direct deposit of all compensation of the person selected for appointment is a minimum qualification for appointment to the covered position pursuant to section 124.151 of the Revised Code and this rule.Because each state sets its own laws regarding direct deposit of employee paychecks, each state has its own approach to related subjects such as "account fees," "opting out," "choosing the financial institution," etc.Contact any Wessels Sherman attorney to discuss questions regarding this subject.An overview of current paycard legislation, state-by-state.
However, employers must provide a paper check if an employee requests it specifically.
The answer for many states is "No." State laws rule in this area.
Many employers call our law firm to see if they can force their employees to use direct deposit.
(D) The appointing authority of a person in a covered position who has failed to authorize the direct deposit of the person's compensation into a financial institution of the person's choice as set forth in paragraph (B) of this rule shall cause the person's compensation to be directly deposited into a financial institution designated by the director of budget and management for the benefit of the person.
A person in a covered position shall comply with all the requirements of the financial institution designated by the auditor of state under this paragraph and the department of administrative services if that person's compensation is deposited into said financial institution as a result of this paragraph.
Readers are solely responsible for remaining in compliance with federal and state labor laws and are encouraged to seek competent legal counsel before taking action based on this material.