Good news!  Direct Deposit eligibility requirements for state employees has been removed.  Direct deposit is a voluntary program that allows for the automatic deposit of an employee’s pay into a financial institution of their choice. There are many advantages to enroll in direct deposit. If enrolled in direct deposit, employees may receive their pay sooner depending on their financial institution and avoid long lines at the bank when trying to deposit their check. 

Recent Changes

The State Controller’s Office recently removed the direct deposit eligibility requirements for State agencies. This will allow more employees to begin direct deposit when first hired. These changes will provide a better experience for new and existing employees who wish to utilize direct deposit.

Although there are no eligibility criteria to initially enroll in direct deposit, employees can be administratively removed from direct deposit for any of the following reasons: 

• The employee’s attendance pattern results in an overpayment situation (e.g. dock and AWOL). They would be eligible for reenrollment after accumulation of 40-hour leave balance.
• The employee is issued a salary advance.
• The employee is on State Disability Insurance and/or Non-Industrial Disability Insurance leave.
• The employee has an outstanding travel advance.
• The employee’s direct deposit payment is returned (e.g. due to a closed account) and the State Controller’s Office must reissue a paper warrant.
• The employee is separating from State service (e.g. retirement, suspension, resignation).
• The employee was overpaid, and the State is recovering the amount of the overpayment
• The employee filed bankruptcy under the National Bankruptcy Act, Chapters VII or XIII, and a court directs all or a portion of the participant’s paid to be remitted to a third party.

Enrollment in direct deposit is easy. Employees must complete theDirect Deposit Enrollment Authorization Form, STD 699 and return it to their Attendance Coordinator.

If you have questions or need additional information, please contact Tuan Nguyen at Tuan.Nguyen@dor.ca.gov or 916-558-5563.