State laws usually require that employees voluntarily participate in direct deposit or paycard programs. States may also allow paycard vendors to charge employees fees, beginning with the second transaction. The chart below summarizes the states’ direct deposit/paycard rules. “Mandatory” means that a state allows you to make e-payment a condition of employment, if you choose. States that don’t have laws aren’t included. In all cases, contact your state labor department for the full story.
Alaska
Direct Deposit: Voluntary
Paycards: No law
Arizona
Direct Deposit: Voluntary; employees get 1 free withdrawal, pay statement
Paycards: May be mandatory; alternative to direct deposit; employees get free access to full pay; disclosure required
Arkansas
Direct Deposit: Voluntary; employees opt out in writing
Paycards: No law
California
Direct Deposit: Voluntary; employees pick in-state bank
Paycards: Voluntary; employees get 1 free transaction
Colorado
Direct Deposit: Voluntary
Paycards: Voluntary; employees get free access to full pay or may choose another payment method
Connecticut
Direct Deposit: Voluntary
Paycards: No law
Delaware
Direct Deposit: Voluntary
Paycards: Voluntary; employees get free access to full pay
District of Columbia
Direct Deposit: Voluntary
Paycards: No law
Florida
Direct Deposit: Voluntary
Paycards: Voluntary; employees get free access to full pay; in-state bank
Georgia
Direct Deposit: Voluntary
Paycards: No law
Hawaii
Direct Deposit: Voluntary; disclosure required
Paycards: No law
Idaho
Direct Deposit: Voluntary
Paycards: No law
Illinois
Direct Deposit: Voluntary
Paycards: No law
Indiana
Direct Deposit: May be mandatory
Paycards: No law
Iowa
Direct Deposit: May be mandatory for new hires; employees incur no bank charges; otherwise voluntary
Paycards: Voluntary; employees get free access to full pay
Kansas
Direct Deposit: May be mandatory; alternative pay method must be offered; disclosure required
Paycards: May be mandatory; alternative to direct deposit; employees get free access to full pay; disclosure required
Kentucky
Direct Deposit: May be mandatory; employees withdraw entire net pay without charge
Paycards: No law
Louisiana
Direct Deposit: May be mandatory; employees incur no fees
Paycards: No law
Maine
Direct Deposit: Voluntary
Paycards: Voluntary; employees get free access to full pay
Maryland
Direct Deposit: Voluntary
Paycards: Voluntary; disclose fees
Massachusetts
Direct Deposit: Voluntary; employee picks bank
Paycards: No law
Michigan
Direct Deposit: May be mandatory; employees pick bank
Paycards: May be mandatory; alternative to direct deposit; employees get 1 free transaction
Minnesota
Direct Deposit: May be mandatory unless employees object in writing
Paycards: Voluntary; employees get free access to full pay; disclosure required; employers register with the state
Montana
Direct Deposit: Voluntary
Paycards: Voluntary; employees get free access to full pay; disclosure required
Nevada
Direct Deposit: Voluntary; employees get 1 free transaction, incur no fees
Paycards: Voluntary; employees get free access to full pay; disclosure required
New Hampshire
Direct Deposit: Voluntary; employees incur no fees
Paycards: Voluntary; employees get free access to full pay; disclosure required
New Jersey
Direct Deposit: Voluntary
Paycards: Voluntary; employees consent in writing; get free access to full pay; disclosure required
New Mexico
Direct Deposit: Voluntary
Paycards: No law
New York
Direct Deposit: Voluntary; may be mandatory for exempts earning more than $900 a week
Paycards: Voluntary for nonexempts; employees get free access to full pay
North Carolina
Direct Deposit: May be mandatory; employees choose bank
Paycards: May be mandatory; employees get free access to full pay; if voluntary, fees begin on 2nd withdrawal
North Dakota
Direct Deposit: Voluntary
Paycards: Voluntary; employees incur no fees
Oklahoma
Direct Deposit: May be mandatory if employees pick bank, otherwise voluntary
Paycards: Voluntary; employees incur no costs
Oregon
Direct Deposit: Voluntary; employees incur no fees
Paycards: Voluntary; employees get free access to full pay
Pennsylvania
Direct Deposit: Voluntary; employees get record of deposits
Paycards: No law
Rhode Island
Direct Deposit: Voluntary
Paycards: No law
South Carolina
Direct Deposit: Voluntary; employees get 1 free withdrawal
Paycards: No law
South Dakota
Direct Deposit: Voluntary
Paycards: No law
Tennessee
Direct Deposit: May be mandatory; employees pick bank
Paycards: May be mandatory; alternative to direct deposit; employees get 1 free transaction; disclosure required
Texas
Direct Deposit: May be mandatory; employer gives 60 days’ notice
Paycards: Voluntary; employees get free access to full pay
Utah
Direct Deposit: May be mandatory, if for preceding year employer deposited at least $250,000 in federal taxes and 2/3 of employees elect direct deposit
Paycards: Voluntary; employees get free access to full pay
Vermont
Direct Deposit: Voluntary
Paycards: Voluntary; employees get 3 free transactions; disclosure required
Virginia
Direct Deposit: Voluntary; employees incur no fees
Paycards: May be mandatory for amusement facility employees and all new hires
Washington
Direct Deposit: May be mandatory if employees incur no fees
Paycards: No law
West Virginia
Direct Deposit: Voluntary
Paycards: Voluntary; employees agree in writing
Wisconsin
Direct Deposit: May be mandatory, if in-state bank; employees incur no fees
Paycards: No law
Wyoming
Direct Deposit: Voluntary
Paycards: No law
