Direct deposit provisions - Virginia

Virginia law does not prohibit private employers from requiring direct deposit, as long as employees may choose the financial institution. For employees hired after January 1, 2010, who fail to designate a bank account for direct deposit, employers may pay wages by prepaid debit card, as long as the employer provides required disclosures of any applicable fees and the employee is able to make at least one free withdrawal per pay period.

For public employers, Virginia has a statewide mandate that allows agencies to require direct deposit for employees. Individual state agencies may set their own policies as long as they are otherwise compliant with state and federal wage laws. Exceptions may be made for employees who cannot access a bank account or for whom direct deposit would cause undue hardship. Payroll debit cards are the preferred alternative method of wage payment in those cases.