Senate Committee Advances Bill To Require Direct Deposit Of State Employee Paychecks

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TRENTON –A Senate panel advanced a bill Thursday that would require direct deposit for all state employee compensation on and after July 1, 2014, and allows counties and county colleges, municipalities, school boards to opt for mandatory direct deposit for all employee compensation on or after July 1, 2014.

The bill (A-720) eliminates administrative costs associated with mailing pay stubs to employees by requiring that all pay information now be available online via the employee’s assigned e-mail address.

Under this roll-out, the treasurer will also have the authority to provide exemptions and waivers for certain employees and departments that cannot accommodate the technological requirements. By fiscal year 2015, the plan could save an estimated $540,000 per year.

“Any plan that can save a half-million dollars per year without disrupting state services is worth doing,” said Assemblywoman Annette Quijano (D-Union). “With finding costs savings so vital, this is a must.”

The bill was released 5-0 by the Senate State Government, Wagering, Tourism & Historic Preservation Committee, and now heads to the Budget & Appropriations Committee for further consideration.

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