You can't pass paycheck processing fees to employees in Idaho

Q         We offer several free payroll options, including direct deposit and a payroll card that doesn’t charge a fee to withdraw wages. Our payroll vendor charges us $20 to mail checks. Can we pass that fee on to the employee if they elect paper checks since we do have free options they may access?

Under Idaho law, employers must pay their employees in cash or by check, but payroll cards aren’t expressly prohibited. If available, employees can choose to receive their paycheck via direct deposit but can revoke their authorization at any time. However, suitable arrangements must be made for all payroll options so paychecks can be processed without charge to the employee. You may not pass a processing fee onto employees if they elect to receive a paycheck by mail even if there are other options that have no fees attached.

Generally, Idaho law related to payroll doesn’t impose many requirements on employers beyond the payment requirement above. Idaho does have a law requiring employers to pay employees at least once a month on regular paydays that are designated in advance, and employees must receive their paycheck within 15 days of the end of the pay period. (If the 15-day period falls on a non-workday, then the payment must be made on the preceding workday.)