AL HB417

Municipalities may adopt a policy requiring new employees hired after policy adoption to participate in direct deposit of wages.

Municipalities must provide employees with an electronic fund transfer authorization form and allow employees to select their own financial institution for deposits.

Municipalities must provide employees with a direct deposit statement each pay period showing total wage, deductions, and amount deposited.

Municipalities cannot require direct deposit if the employee would incur fees and a comparable fee-free financial institution is unavailable to the employee in the municipality.

The act becomes effective on the first day of the third month following passage and approval by the Governor.