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IDear Workforce-I Can We Do Direct Deposit Only

The Jersey statute offers a good example.
December 27, 1999
Related Topics: Finance/Taxes, Dear Workforce

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.

E-mailyour Dear Workforce questions toOnline Editor Todd Raphael at,along with your name, title, organization and location. Unless you stateotherwise, your identifying info may be used on and in Workforcemagazine.


 The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.

If you have any questions or concerns about, please email or call 312-676-9900.

The Workforce fax number is 312-676-9901.

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