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['Compensation']
['Payroll', 'Compensation']
11/11/2025
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State Info
Direct deposit provisions - Kentucky
Kentucky law permits private employers to require direct deposit as a condition of employment. There are no statutory restrictions preventing this practice, as long as employees can access their full wages without fees or deductions.
For state employees, direct deposit of payroll is mandatory for hires occurring after January 2015 who are paid via the Kentucky Human Resource Information System. If an employee fails to choose a financial institution, that employee is paid via payroll card. Day laborers and state active-duty employees are exempt from this requirement.
Related information
Citations
- KRS Sections 337.010 to 337.070
- KRS Section 41.165
- Kentucky Personnel Dept. – Direct Deposit and Electronic Salary Statement Information
- 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']
['Payroll', 'Compensation']
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