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Because Louisiana does not have any law prohibiting direct deposit, employers are likely permitted to use direct deposit to pay employees. It is uncertain whether an employer may lawfully require an employee to be paid by way of direct deposit.
Can an employer stop a direct deposit?
One adjustment the payroll administrator can make is turn off the individuals Direct Deposit. This will result in the advantage of a final paycheck that will have to be given directly to the terminated employee.
What is a direct deposit agreement?
What is a Direct Deposit Authorization Form? Direct deposit authorization forms authorize employers to send money directly into an individuals bank account. In times past, employers would print out and distribute physical checks on pay day for each employee to deposit into their bank accounts themselves.
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Guidance for state agency employers when updating an
Feb 9, 2021 Guidance for state agency employers when updating an employees electronic fund transfer (direct deposit) information. February 9, 2021.
As with stopping a direct deposit, requests to change a direct deposit must be received by Tuesday of non-pay week for a check to be issued the following week.
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