March 20, 2013
Re: Governor signs law that permits mandatory direct deposit
Recently, Governor Christie signed P.L. 2013, c.38 requires direct deposit for all State employee compensation on and after July 1, 2014; allows county, county college, municipality, and local school district to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014 into law.
P.L. 2013, c. 38 permits a governing body, on or after July 1, 2014, to adopt an ordinance or resolution, as appropriate, to provide for the mandatory direct deposit of net pay for all employees of the municipality in a specific bank based on information provided by the employee. The governing body can authorize exemptions to the requirements adopted subject to terms and conditions that they deem necessary and can grant exemptions for seasonal and temporary employees. In addition, the governing body may make available for employees’ information concerning net pay, any accompanying information approved for distribution with net pay, and W-2 forms in accordance with applicable federal law, available only on the Internet with restricted access and policies and procedures to protect the integrity and confidentiality of the information.
P.L. 2013, c. 38 took effect immediately and applies to payroll checks on or after July 1, 2014.
Very truly yours,
William G. Dressel, Jr.