Mandatory Direct Deposit Option Coming to Oklahoma
In the recent session of the Oklahoma Congress, lawmakers passed Senate Bill 1345, amending the Oklahoma statutes on labor (Title 40). While the bill did clean up some definitions and numbering to the state labor laws, the main change to the state regulations is how employees can be paid.
Oklahoma has always been an employee-choice state regarding receiving pay for work performed. Employers had to provide payroll checks and immediate cashing options for those checks either in the office or at the employer's financial institution. Well, those days will be no more.
As of November 2022, Oklahoma employers can require all employees to use direct deposit for payroll checks; if an employee doesn't want to sign up for direct deposit, an employer can place the funds on a payroll card. The option for a paper payroll check remains valid with this Oklahoma Title 40 update, but employers will still have to adhere to the immediate "cash-ability" of any paper paychecks issued.
While this change to the Oklahoma payroll labor laws is subtle, it will help countless employers across Oklahoma avoid paycheck hoarding, save on costly payroll checks and stubs, and allow for more automation within payroll.