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['Compensation']
['Payroll', 'Compensation']
11/11/2025
State Info
Direct deposit provisions - Minnesota
Minnesota state law allows private employers to pay wages via direct deposit, except in instances of written objection by the employee. For the public sector, the law allows the state to require direct deposit for all state employees who are paid via the state payroll system, with limited exceptions. Municipalities are allowed to mandate direct deposit as well for employees paid via that municipality’s payroll system.
Related information
Citations
- Minn. Stat. Sec. 177.23
- Minn. Stat. Sec. 177.255
- Minn. Stat. Sec. 181.02
- Minn. Stat. Sec. 16A.17, subd. 10
- Minn. Stat. Sec. 471.426
- Minn. Office of Management and Budget – Direct Deposit Requirement and Options
- 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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