Sample policy for mandating direct deposit

CA Labor Code Section 207 Wages earned between the 1st and 15th days of any calendar month must be paid no later than the 26th day of the month during which the labor was performed.

Wages earned between the 16th and last day of the month must be paid by the 10th day of the following month.

The employer may take no longer than 1 pay period to implement the change after receiving the employee’s request and the necessary information.

CA Labor Code Section 204 An employer must pay overtime wages no later than the payday for the next regular payroll period following the payroll period in which the overtime wages were earned.This requirement shall apply only to allowances with an effective date on or after the effective date of this regulation.807-18.02 Payment of any such allowance (except for health insurance and appropriate tax deductions) may be suspended for so long as the member or beneficiary fails to designate such institution or account after having a reasonable opportunity to do so; provided, however, that after such designation is made, the amount of such allowance that was not paid during the suspension shall be paid retroactively.807-18.03 Notwithstanding 18.01 above, the Executive Director may, upon written request, in his/her discretion allow payment by paper check in unusual circumstances that he/she believes warrant such an exception. The Commonwealth of Kentucky utilizes direct deposit to deliver payroll.An employer must comply with CA Labor Code Section 226(a) relating to total hours worked by the employee if the overtime hours are recorded as a correction on the itemized statement for the next regular pay period and include the dates of the pay period for which the correction is being made.CA Labor Code Section 204(b)(2) Some exceptions apply to these requirements.

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In California, most employers must pay employees their regular wages, with some exceptions, at least twice during each calendar month on the days designated in advance as regular paydays.

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