McAfee & Taft labor and employment attorney Sharolyn Whiting-Ralston was featured in The Oklahoman discussing the specific rules regarding an employer’s use of direct deposit and payroll cards. In an opinion issued by the Oklahoma attorney general, employers can require their employees to accept payment by direct deposit, but cannot require employees to also use a specific financial institution. And although attorney general opinions aren’t binding law, Whiting-Ralston tells The Oklahoman, “they are persuasive, and a review of the Oklahoma Department of Labor’s Web site indicates its officials agree.”
She went on to say that employers can provide direct deposit to only those employees who use the financial institution of the employer’s choosing, but must also give employees the option to receive cash or check. However, when it comes to payroll cards, employers can only offer the option. According to Whiting-Ralston, “Regulation E to the EFTA allows financial institutions to issue payroll cards (or similar devices) only when the employee has ‘requested’ it.” And regardless of the method in which an employer pays its employees, the employer is always required to issue and itemized pay stub.
You can read the entire article here.