Under Labor Code Section 213(d), employers cannot require an employee to be paid via direct deposit unless the employee voluntarily authorizes it. Usually, employers will obtain written authorization, but it is not necessarily required in all circumstances.
Employers may also pay a final paycheck via direct deposit if the deposit is made within the deadlines required by law which would be on the date of termination or no later than 72 hours after an employee gives notice of resignation if the employee does not provide at least 72 hours of notice.
However, most payroll companies would not be able to process a direct deposit on the same date as the request, which could present challenges for timely paying a final paycheck. As a result, most employers attempt to make that final payment with a paper paycheck.