Need help with info on Direct Deposit requirements!!

Dear HR Community, I have a very important question from a client. Can anyone offer any insight? Thank you in advance!, Joseph /

"Which States can I as an employer with Multiple States facilities require employees to go paperless by requiring employees to use direct deposit [U]and [/U]web-based access to their check stubs (payroll system access...i.e.ADP)?"


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  • The [I][url=]Fifty Employment Laws in Fifty States[/I][/url] manual covers the first part of the question, direct deposit, in [url=]Chapter 10.[/url]

    For the second part of the question, which it seems might be good additional information for the next edition of [I]Fifty Employment Laws in Fifty States,[/I] it's less a matter of what you can require the employee to receive, and more a matter of what you, the employer, are required to provide. From that, there are a number of states (about half) that require that you provide [I]access[/I] to a written pay stub, but the key word here is [I]access.[/I] The laws that set these pay stub requirements don't actually state that you, the employer, have to provide a pre-printed, folded, signed, sealed, and delivered pay stub, so much as that you have to provide [I]access[/I] to one. So if you wish to go to an online payroll system, you're still likely to be fine in most states [I]so long as[/I] the employees have the option to print a copy of the stub if they need a printed copy themselves.

    Of significance are the states in which you are required to give the employee the chance to opt out of receiving electronic delivery of paystubs: By my research, that includes California, Delaware, Massachusetts, Oregon, Wisconsin, and Wyoming.
  • I know I require Direct Deposit and the employees are able to use a password and go online through our software and get their paystubs. When I have the new hire orientation I let them know that we do not use paper checks and they all seem very happy with the arrangement. I am in Washington where this is okay.
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