la-202610-72548b57c4: Direct Deposit of Employee Pay

Office of the GovernorDivision of Administration Office of State Uniform Payroll Direct Deposit of Employee Pay (LAC 4:III.Chapter 3) In accordance with the provisions of the Administrative Procedure Act, R.S. 49:953(A), the Office of State Uniform Payroll (OSUP) proposes to amend LAC 4:III, Chapter 3, Direct Deposit of Employee Pay. The amendments are technical in nature and do not modify the intent of this Rule which is to require direct deposit as a condition of employment for all employees on the state’s payroll system. Title 4 ADMINISTRATION Part III. Payroll Chapter 3.Direct Deposit of Employee Pay §301.Definitions * * * Direct Deposit Enrollment Authorization Form—the standard form developed by the Division of Administration, Office of State Uniform Payroll, completed by the employee, giving the employing agency authority to process employee specific direct deposit bank account information in the LaGov Human Capital Management (HCM) System for the electronic transfer of funds. Division of Administration (DOA)—the Louisiana State Agency under the executive department which provides centralized administrative and support services to state agencies as a whole by developing, promoting, and implementing executive policies and legislative mandates. Employee Administration—the section within an agency responsible for payroll and human resources. * * * Foreign Financial Institution—a bank, savings and loan, or credit union established and regulated in a country or territory outside of the United States. * * * International ACH Transations (IAT)—ACH transactions that are part of a payment chain that begins or ends in another country outside of the United States. Involuntary Payroll Deduction—any reduction of net pay which is required by federal or state statute, or by court ordered action. LaGov Human Capital Management (LaGov HCM) System—the Louisiana Government system administered by the Division of Administration, Office of State Uniform Payroll to provide uniform payroll services to state agencies. Louisiana Employees Online (LEO)—the State of Louisiana’s employee self-service portal through which active employees may update personal and banking information, access employment and tax documents, and perform other employment-related transactions. Net Pay—the amount of compensation due to the employee after making all voluntary and involuntary deductions. * * * Secondary Bank Account(s)—an employee’s checking or savings account at a financial institution to which a fixed dollar amount or percentage of net pay is deposited. * * * Waiver—authorization by the Division of Administration, Office of State Uniform Payroll, for an exception to the enforcement of the direct deposit requirements of this rule. Waiver Form—the standard form developed by the Division of Administration, Office of State Uniform Payroll, completed by the employee to request a waiver from the enforcement of the direct deposit requirements of this rule. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1197 (June 2002), amended LR 53: §303.Direct Deposit of Employee Pay A.Unless a waiver is granted under §309 of this Chapter, effective July 1, 2002, all employees paid through the LaGov HCM system are required to receive wage and compensation payments via direct deposit through the Automated Clearing House (ACH). B.Employees may enroll in direct deposit electronically via LEO by logging into their LEO account and entering the routing number and account number of the employee’s primary bank account. C.Alternatively, employees may choose to complete an approved direct deposit enrollment authorization form. These forms can be obtained from the employee administration office of the employing agency. The completed forms must be returned to the employee administration office of the employing agency. D.Employees may choose to send a fixed dollar amount or a percentage of their net pay to a secondary bank account(s) by entering the routing number and account number of the secondary account and specifying the amount or percentage of the employee’s net pay to be allocated to the secondary account, the remaining of which will be deposited in the employee’s primary account. The process of enrolling a secondary bank account is the same as above. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1198 (June 2002), amended LR 53: §304.International ACH Transactions A.Direct deposit to a foreign (non-United States) financial institution is prohibited. B.Employees must affirm in LEO or on the direct deposit enrollment authorization form whether the entire amount of any payroll direct deposit transaction(s) sent to their account(s) at a United States financial institution will subsequently be forwarded to a foreign financial institution. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 53: §309.Request for Direct Deposit Waiver A.Employees may request a waiver of the requirement for direct deposit by completing and submitting to the employee administration office of the employing agency a request for direct deposit waiver on an approved waiver form. The approved form can be obtained from the employee administration office of the employing agency. The employee administration office is required to submit all requests for waivers to the department head or representative. The department head or representative must approve or deny the waiver based on reasonableness of the request. Approved waivers must be submitted to the Office of State Uniform Payroll for final approval/denial. The Office of State Uniform Payroll will approve, or deny, the request for waiver and return the form to the agency who must then notify the employee of the status of the request for waiver. The agency must maintain a copy of the waiver form with the employee's records with a notation as to when the employee was notified of the waiver status. Waivers may be approved for geographical barriers, physical/mental disability barriers, the inability of the employee to establish an account at any financial institution, or instances in which the employee’s entire payroll deposit will subsequently be transferred to a foreign financial institution. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1199 (June 2002), amended LR 53: §311.Enforcement of Rule A.Employees without an active direct deposit record in LaGov HCM or an approved waiver will be locked from payroll processing until such time that the employee enters bank account information using LEO or completes an approved direct deposit enrollment authorization form and forwards said form to the employee administration office of the employing agency. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1199 (June 2002), amended LR 53: §313.Department/Agency Responsibility A.Departments/Agencies are responsible for incorporating within the hiring process notification of direct deposit as a condition of employment, enforcing compliance with this rule, reviewing and approving/denying employee requests for waivers, forwarding approved waivers to the Office of State Uniform Payroll for final approval/denial of waivers, notifying employees of the final decision on the waivers, maintaining record of waivers, and withholding job offers to prospective employees failing to comply with this rule. AUTHORITY NOTE:Promulgated in accordance with R.S. 39:247. HISTORICAL NOTE:Promulgated by the Office of the Governor, Division of Administration, Office of State Uniform Payroll, LR 28:1199 (June 2002), amended LR 53: Family Impact Statement The proposed amendments are not anticipated to have an impact on family formation, functioning, stability, or autonomy, as described in R.S. 49:972. Poverty Impact Statement The proposed amendments are not anticipated to have an impact on poverty, as described in R.S. 49:973. Small Business Analysis The proposed amendments are not anticipated to have an adverse effect or economic impact on small businesses in accordance with the Regulatory Flexibility Act. Provider Impact Statement The proposed amendments are not anticipated to have an impact on providers of services funded by the state as described in HCR 170 of the 2014 Regular Legislative Session. Public Comments Interested persons may submit written comments to Paula Rotolo, Payroll Manager, Office of State Uniform Payroll, Box 94095, Baton Rouge, LA 70804 or by facsimile to (225) 342-1650. All comments must be submitted by 4:30 p.m., November 10, 2026. Public Hearing A public hearing on the proposed amendments may be held on Wednesday, December 2, 2026, beginning at 9 a.m. in the Marbois Room (Room 1-137) on the first floor of the Claiborne Building, located at 1201 North Third Street, Baton Rouge, LA 70802, if such a hearing is requested by November 10, 2026, by 4:30 p.m. All interested persons will be afforded an opportunity to submit data, views, or arguments, orally or in writing, at the hearing. For assistance in determining if a hearing will be held, please call OSUP at 225-342-0713. Nancy Keaton Assistant Commissioner FISCAL AND ECONOMIC IMPACT STATEMENT FOR ADMINISTRATIVE RULES RULE TITLE: Direct Deposit of Employee Pay I.ESTIMATED IMPLEMENTATION COSTS (SAVINGS) TO STATE OR LOCAL GOVERNMENT UNITS (Summary) There are no anticipated implementation costs or savings for state or local governmental units as a result of these proposed rule changes. The proposed rule changes make technical updates to the Direct Deposit of Employee Pay regulations that do not modify the intent of these rules, which is to require direct deposit as a condition of employment for all employees on the State’s payroll system. The proposed rule changes: Update terminology related to the State’s payroll system name, Add a process for employees to enroll in direct deposit electronically, and Add regulations for International Automated Clearing House (ACH) transfers. II.ESTIMATED EFFECT ON REVENUE COLLECTIONS OF STATE OR LOCAL GOVERNMENTAL UNITS (Summary) There is no anticipated effect on revenue collections of state or local governmental units as a result of these proposed rule changes. III.ESTIMATED COSTS AND/OR ECONOMIC BENEFITS TO DIRECTLY AFFECTRED PERSONS, SMALL BUSINESSES, OR NONGOVERNMENTAL GROUPS (Summary) There is no anticipated cost or economic benefit to state employees, state agencies or any other non-governmental group as a result of these proposed changes. IV.ESTIMATED EFFECT ON COMPETITION AND EMPLOYMENT (Summary) There is no anticipated impact on competition and employment as a result of these proposed changes. Nancy KeatonPatrice Thomas Assistant CommissionerDeputy Fiscal Officer 2610#011Legislative Fiscal Office