['Compensation']

['Compensation', 'Payroll']

11/06/2025

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Direct deposit provisions - California

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Direct deposit provisions - California

RegSense State Info Compensation Payroll California Compensation Best Results HR Management English Focus Area Human Resources

In California, employers (private and public sectors) may offer direct deposit as a voluntary option, but they cannot mandate it. Employees must authorize in writing whether they wish to receive pay via direct deposit. Employers must offer alternative payment methods, such as paper checks that are negotiable and payable in cash at a bank or business in California.

Related information

Compensation ezExplanation
Payroll ezExplanation
Fair Labor Standards Act (FLSA) ezExplanation

Citations

CA Labor Code Sections 212 to 213(d)
15 USC 1693 et seq. — Electronic Funds Transfer Act (EFTA)
12 CFR Part 1005 — Electronic Fund Transfers (Regulation E)
FOH Chapter 30 RECORDS, MINIMUM WAGE, AND PAYMENT OF WAGES (U.S. DOL – page 11, Sec. 30c)
29 CFR 531.35 — “Free and clear” payment; “kickbacks”

['Compensation']

['Compensation', 'Payroll']

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