Direct Deposit of Wages

The Law

Wisconsin labor standards laws do not directly address the issue of direct deposit of wages. However, several laws have an indirect impact on how direct deposit programs may be used.

Mandatory Direct Deposit

As stated above, mandatory direct deposit systems are permitted under certain circumstances:

Voluntary Direct Deposit

If an employer chooses to institute a direct deposit pay system that is available at the option of the employee, it is immaterial whether or not there are fees associated with obtaining the wages. If the employee chooses to use the direct deposit system, it is assumed that the employee has agreed to pay these fees for the convenience and security of having the wages placed directly into his or her bank account.

Direct Deposit as a Condition of Employment

Because this issue is not addressed in the statutes, an employer may make employee participation in a direct deposit pay program a condition of employment. An employer may also require that established employees participate in a direct deposit system as a condition of continued employment.

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