Oklahoma to Permit Direct Deposit, Paycard Mandate
Effective November 1, 2022, employers will be permitted to pay Oklahoma employee wages via payroll card, if the employees do not consent or designate a financial institution for payment of wages via direct deposit [S.B. 1345, L. 2022].
Under the law, "payroll card" is defined as a card or other device used by an employee to access wages from a payroll card account. A "payroll card account" is defined as a prepaid account that is directly established through an employer and to which transfers of the employee's wages, salary, or other compensation are made on a recurring basis.
Requiring Paperless Pay
Effective November 1, 2022, employers in the state may choose to pay all wages due to an employee via deposit on the payday at a financial institution of the employee's choice (e.g. direct deposit), or if the employee does not consent or designate a financial institution, to a payroll card account.
Currently, an employer cannot require the use of paycards in Oklahoma, pursuant to an opinion letter that was issued in 2009 (Oklahoma Attorney General Opinion No. 09-31, 11-17-09).
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for the APA.