Many employers call our law firm to see if they can force their employees to use direct deposit.Interestingly, some states, such as Missouri and Ohio, have no direct deposit laws.
The acceptance by the employee of the payment of wages conceded to be due does not constitute a release as to the balance of his claim.
The Illinois Wage Payment and Collection Act requires employers to pay each of its employees his/her wages in a form that the employee may readily convert into cash (without the need of a personal bank account), unless an employee freely volunteers to be paid by direct deposit into an account with a financial institution of his/her choice.
This means that an Illinois employer cannot force (by means of company policy) employees to accept "direct deposit" as a method of payment.
An employer must pay its employees, except yearly salaried employees, no less frequently than semi-monthly (twice per month) on pay days designated in advance by the employer.
An employer must pay its non-yearly-salaried employees within ten days after the end of a pay period.