Employment Law Tip: Direct Deposit—Don’t Force It

Direct payroll deposit can be a real timesaver for employers and employees alike. But did you know that California law prohibits employers from requiring employees to use direct deposit for their paychecks? Specifically, Labor Code Section 213 makes it clear that employers can use direct deposit, but only when the employee voluntarily authorizes it.

Additional Resources:

Labor Code Section 213

Sample Direct Deposit Policy (Start your guest access and get this now)

Sample Direct Deposit Authorization Form (Start your guest access and get this now)