§ 11-47-26 — Payment of Municipal Employees by Direct Deposit of Wages

Alabama § 11-47-26

• Jurisdiction: Alabama
• Title 11: Counties and Municipal Corporations
• Ch. 47: Powers, Duties and Liabilities Generally
• Art. 1: General Provisions

Text

(a) A municipality may adopt a policy to require new employees hired by the municipality after the adoption of the policy to participate in direct deposit of the employee’s wages.
(b) If a municipality elects to pay the wages of its employees by direct deposit, the municipality shall do all of the following:
(1) Provide a municipal employee with an electronic fund transfer authorization form.
(2) Deposit the wage of a municipal employee into a personal bank account at a financial institution selected by the employee on the electronic fund transfer authorization form.
(3) Each time the municipality pays the wage of a municipal employee by direct deposit, provide the employee with a direct deposit statement that includes:
a. The total amount of the wage.
b. Any amount deducted from the wage.
c. The amount of the wage directly deposited into the personal bank account selected by the employee.
(c) A municipality may not require an employee to participate in direct deposit of the employee’s wages if the employee would incur fees charged to the employee’s account as a result of the direct deposit and a comparable financial institution that would not charge a fee for a direct deposit is not available to the employee in the municipality.
(d) An employe may opt out of the direct deposit requirement by submitting a written request to his or her employer prior to the end of the first pay period, or once annually thereafter.

Legislative History

(Act 2014-334, p. 1231, §1.)