['Compensation']

['Compensation', 'Payroll']

11/11/2025

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REGSENSE
Topic Search
Compensation - Compensation
State Info

State Info

Direct deposit provisions - Tennessee

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

Private employers with five or more employees may pay employees by direct deposit or other electronic means (such as a prepaid debit card). There is no requirement in the law for employees to give consent.

Tennessee law allows the state to require direct deposit as a condition of employment for all employees who are paid through the central payroll system.

Related information

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

Citations

Tenn. Code Ann. Sec. 50-2-103(e)
Tenn. Code Ann. Sec. 8-23-202
Dept. of Finance and Admin. Policy 1 – Automatic Deposit of Paychecks for Employees (2018)
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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