Can an employer require that all employees have direct deposit?

Employers may offer direct deposit but cannot require it. Labor Code Section 213(d) allows employers to deposit wages directly if the employee voluntarily authorizes the deposit.

Labor Code Section 213(d) was amended in 2006 to allow final wages to be paid by direct deposit without separate employee authorization. However, the Labor Commissioner’s Office has not updated its website guidance and may still require voluntary authorization for direct deposit of final pay. If using this method, employers must still comply with all final pay timing requirements.

Read more about Final Pay in the HR Library.