Direct Deposit Incentive

[vpatel]

We are a California company trying to give people an incentive to use direct deposit. One of the managers came up with the idea of depositing funds 2 days earlier for direct deposit than those with paper checks. i.e. DD funds will be available March 28 (the paper stubs will state that the dd funds will be deposited March 31), while paper checks will be dated and available to cash on March 31. Is this considered discriminating to non DD employees? Is this legal or illegal? Any help or reference would be appreciated. Thank you.

[hr for me]

Regs:
204. (a) All wages, other than those mentioned in Section 201, 202,
204.1, or 204.2, earned by any person in any employment are due and
payable twice during each calendar month, on days designated in
advance by the employer as the regular paydays. Labor performed
between the 1st and 15th days, inclusive, of any calendar month shall
be paid for between the 16th and the 26th day of the month during
which the labor was performed, and labor performed between the 16th
and the last day, inclusive, of any calendar month, shall be paid for
between the 1st and 10th day of the following month. However,
salaries of executive, administrative, and professional employees of
employers covered by the Fair Labor Standards Act, as set forth
pursuant to Section 13(a)(1) of the Fair Labor Standards Act, as
amended through March 1, 1969, in Part 541 of Title 29 of the Code of
Federal Regulations, as that part now reads or may be amended to
read at any time hereafter, may be paid once a month on or before the
26th day of the month during which the labor was performed if the
entire month's salaries, including the unearned portion between the
date of payment and the last day of the month, are paid at that time.

(b) (1) Notwithstanding any other provision of this section, all
wages earned for labor in excess of the normal work period shall be
paid no later than the payday for the next regular payroll period.
(2) An employer is in compliance with the requirements of
subdivision (a) of Section 226 relating to total hours worked by the
employee, if hours worked in excess of the normal work period during
the current pay period are itemized as corrections on the paystub for
the next regular pay period. Any corrections set out in a
subsequently issued paystub shall state the inclusive dates of the
pay period for which the employer is correcting its initial report of
hours worked.
(c) However, when employees are covered by a collective bargaining
agreement that provides different pay arrangements, those
arrangements shall apply to the covered employees.
(d) The requirements of this section shall be deemed satisfied by
the payment of wages for weekly, biweekly, or semimonthly payroll if
the wages are paid not more than seven calendar days following the
close of the payroll period.


I can't find anything online other than that. I would call the DLSE and confirm that you could pay the DD's earlier.