JANUARY/FEBRUARY 2006

I. LEGISLATIVE/REGULATORY UPDATE

Employers Permitted to Pay Employees’ Final Wages by Direct Deposit

AB 1093 (Matthews) was passed by the legislature last year and signed by Governor Schwarzenegger. The statute, which took effect on January 1, 2006, permits employers to deposit an employee’s final wages (including unpaid vacation benefits) via direct deposit, in any bank, savings and loan association, or credit union of the employee’s choice, provided that the employee has voluntarily authorized that deposit. Thus, if an employee has previously designated an account to which his or her wages would normally be deposited, the employee’s final paycheck may also be deposited into that account.

NEXT: Employer Held Liable for Disability Discrimination After Failing to Reinstate Alleged Attempted Murderer