12 | Massachusetts Wage & Hour Peculiarities, 2025 ed. © 2025 Seyfarth Shaw LLP imposed no affirmative obligation on a particular employer to furnish facilities for the cashing of checks to employees, the employer was under no obligation to provide them.67 2. Direct Deposit Employees are commonly paid through direct deposit. The Office of the Massachusetts Commissioner of Banks, which enforces and interprets banking laws, has issued an opinion letter stating that employers may require their employees to use direct deposit for their wages, as long as each employee remains free to choose the institution at which the funds will be deposited.68 The Office of the Commissioner finds this decision conforms with federal regulations holding that “[n]o financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment . . . .”69 The official federal commentary on this provision specifies that “[a]n employer may require direct deposit of salary by electronic means if employees are allowed to choose the institution that will receive the direct deposit. Alternatively, an employer may give employees the choice of having their salary deposited at a particular institution (designated by the employer) or receiving their salary by another means, such as by check or cash.”70 3. Pay Cards Pay cards are becoming increasingly popular among employers. Massachusetts law is silent on whether employers may require employees to accept payment by pay card. Employers therefore should seek the advice of legal counsel prior to implementing mandatory payroll debit cards.71 D. When Are Wages “Earned”? The Wage Act governs “wages earned” but does not define “earned.” The SJC has addressed this issue and held that: the word “earn” is not statutorily defined, but its plain and ordinary meaning is “[t]o acquire by labor, service, or performance,” or “[t]o do something that entitles one to a reward or result, whether it is received or not.” Where an employee has 67 See Corraro’s Case, 380 Mass. 357, 358-59 (1980). 68 Massachusetts Division of Banks Opinion Letter 04-041, available at https://www.mass.gov/opinion/selected-opinion-04-041 (June 30, 2004). 69 12 C.F.R. § 205.10(e)(2). 70 See 66 Fed. Reg. 15192 (Mar. 16, 2001). 71 As of the date of this publication, several bills have been filed before the Massachusetts legislature intended to codify the use of pay cards in the state. See, e.g., Bill H.1931 (referred to Committee on Labor and Workforce Development, February 16, 2023); Bill H.1841 (referred to Committee on Labor and Workforce Development, February 16, 2023).
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