NC and SC Direct Deposit and Pay Card Requirements

Direct Deposit/Pay Card requires that:

• Employees can withdraw their full wages on payday
• Employees are entitled to one free use of the card each payday at no cost.
• Such fees do not result in the employee making less than state or federal minimum wage (see Federal section)
• If direct deposit is the only option offered the employee, the employees must be able to choose their own financial institution.
• If direct deposit is used in conjunction with the use of a payroll card account, an employer can require the payroll card account to be with a particular financial institution as long as deposits in that institution are insured by the U.S. government, and as long as regular direct deposit is offered to any financial institution of the employee’s choice.

Direct Deposit/Pay Card requires that:

• The deposit be at a financial institution which is doing business in the State and is insured by an agency of the federal government.
• The employee is furnished a statement of earnings and withholdings.
• There are no fees related to the deposit of funds.
• In addition, any wage deposit plan (pay card or direct deposit) adopted by an employer shall entitle each employee to at least one withdrawal for each deposit up to the full check, free of any service charge.

There is no reference to pay cards in SC law, therefore it is best practice to not mandate pay cards, and to get consent from the employee. (See federal guidelines on fees.)