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Ramos/Gordon Bill To Streamline Public Employee Paychecks Signed By Governor

Senator Bob Gordon hears testimony during the Senate Environment Committee.

Mandatory Movement to Direct Deposit to Save $500,000 Annually

Governor Chris Christie signed legislation sponsored by Assemblyman Ruben Ramos and Senator Bob Gordon requiring public employees to have their pay deposited directly into their bank accounts – as opposed to receiving paper checks.

“It’s the 21st century and it’s time the state of New Jersey began acting like it,” said Ramos (D-Hudson). “There’s no excuse as to why the state insists on physically mailing pay stubs that are sealed in an envelope, printed on paper, stamped and labeled. This is a recurring administrative cost that the state incurs for thousands of employees.”

“In the long-run, this initiative will save a considerable amount in taxpayer dollars. The fact is every penny government can save, is a penny that can be either reinvested in vital programs or returned to taxpayers,” said Gordon (D-Bergen/Passaic). “I applaud the Governor for signing this piece of legislation.”

Already an option for public employees, the bill (A-720/S-2090) makes direct deposit mandatory for all state employees as of July 1, 2014, and would allow counties and county colleges, municipalities and school districts to make such a change upon passage of a local ordinance or resolution.

In addition, employees would be given access to Internet-based information concerning net pay, accompanying information, and W-2 forms, eliminating those paper forms. Employees who can show a hardship would be able to request paper checks and forms.

The new law is estimated to save nearly $300,000 in both fiscal years 2013 and 2014, and more than half a million dollars in FY2015.

According to the state Department of Treasury, approximately 20,000 state employees receive paper paychecks.

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