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The Wisconsin Department of Workforce Development (DWD) uses interpretation and inferences from Wisconsin wage and hour laws.

The DWD says on its website that a direct deposit system must utilize a Wisconsin facility unless the employee voluntarily chooses a facility that is located outside of the state.

As noted above, Michigan employers still cannot mandate direct deposit for all employees, but the new law moves us closer to that system.

Now, although employers still may not mandate direct deposit for all employees, they can require their employees to accept either direct deposit or to receive their pay on a payroll debit card if certain notices and protections are provided. The answer for many states is "No." State laws rule in this area. Many employers call our law firm to see if they can force their employees to use direct deposit. The law allows wages or final compensation to be paid in lawful money of the United States (which includes cash) or by check, redeemable upon demand and without discount at a bank or other financial institution, or by deposit of funds in an account in a bank or other financial institution designated by the employee. If you elect to submit a claim form to the Department, the Department will commence an investigation into your claim. You may file a claim with the Illinois Department of Labor by completing a claim form which can be found on the Department's web site or you may prosecute your own claim in the Circuit Court of Illinois.

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Because each state sets its own laws regarding direct deposit of employee paychecks, each state has its own approach to related subjects such as "account fees," "opting out," "choosing the financial institution," etc.

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