IDear Workforce-I Can We Do Direct Deposit Only

DearWorkforce:

We’re thinking ofmandating direct deposit of paychecks. Is this OK?
(Ginny GordonGriffiths, HR Manager, Centryco, Burlington, NJ).

I note that your messagewas sent from New Jersey. The statute relating to direct deposit of wages forNew Jersey reads as follows: Direct deposit of an employee’s wages into theemployee’s account in a financial institution is permitted with the employee’sconsent (N.J. Rev.Stat., §34:11-4.2a).

In addition, arepresentative at the department of labor in New Jersey confirmed in atelephone conversation that employers in New Jersey cannot mandate directdeposit.

Most states have similarstatutes on file. Therefore, to ensure compliance with state regulations, itwould be advisable to consult with the department of labor in the appropriatestate or with an attorney for an interpretation of local labor laws.

SOURCE: Ceridian Employer Services, Minneapolis, December 1999.

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