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Quick Summary
An employer can, theoretically, pay its California employees with checks issued from an out of state bank. However, California's requirements make such a practice impracticable.
Law Review
Employees cannot be paid wages with just any check. The California Labor Code imposes several requirements when employees are paid by check, including that the check by payable:
- In Cash
- On Demand
- Without Discount
- At an Established Place of Business Within California
All of these requirements are obstacles to paying California workers with an out of state check.
More Information is Available with a Premium Subscription
How a business can be sued by choosing the wrong bank to issue paychecks (and which banks are involved in lawsuits)
Why it is virtually impossible to use out of state banks to pay California employees
Detailed discussion of the requirements to issue paychecks
Little known identification information required on payroll checks
Text of pertinent statute and case reference
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