N.J. legislation would require direct deposit for state workers

A New Jersey Senate committee will consider legislation tomorrow that would require direct deposit for state workers’ paychecks.

The Assembly passed the bill without opposition in June, but it stalled in the Senate because of concerns about employees who might not have a bank account or online access to their payroll information.

Sen. Bob Gordon said there are provisions to deal with that.

“If they can show a hardship they would be able to continue to receive paper checks and the accompanying payroll information,” Gordon said. “We’ve been working with the Treasury Department to develop the criteria for what constitutes a hardship. We’re waiting to hear from them on that.”

Debit cards could also be issued. Gordon said not having to print the checks or paystubs would save the state more than $500,000 a year.

The legislation also allows local governments and school districts to make direct deposit mandatory.