Paycheck Stub Requirements Per State
Although nearly 100 percent of employees get their pay via direct deposit, a lot of small businesses still prefer to use paper checks for their payroll.
Employers are not required by the Fair Labor Standards Act (FLSA) to provide pay stubs, but they are required to keep accurate records of their workers’ wages and hours rendered. Therefore, prior to choosing how to go about employee payments, make state compliance a priority.
States with NO Pay Stub Requirements
There are presently nine states with no requirement for employers to hand out pay stubs to workers, but if chosen by the employers, pay stubs may be given in electronic format. Such states are the following:
States Requiring ACCESS to Pay Details
On the other hand, some states actually require employers to give out statements detailing pay information of workers. But it is not necessary to provide the pay statement on paper. Here are such states:
A sensible interpretation of the law suggests that employers can meet these states’ pay stub requirements through digital means. In any case, employees should be able to access the electronic or digital pay stubs.
Keep in mind though that even with most states adopting this interpretation, some state agencies may require more items – for example, the ability to print the electronic pay stubs.
States that Require Pay Information ACCESS AND PRINT Capability
Some states require employers to furnish employees a written or printed pay statement that contains their pay information. But these pay statements do not necessarily have to be delivered together with the check or in another format. Logical interpretation of this law says an employer can meet this pay stub requirement by providing workers with printable electronic pay stubs. It is the job of employers to make sure that their employees are able to access the pay stubs and can print them.
Again, some state agencies may have additional requirements – for example, the worker consenting to receive his or her pay stubs electronically. These are the states where the above applies:
At present, Hawaii is the only state which requires worker consent before an electronic pay system can be implemented. Except when the employee consented to the paperless method, the employer is required to provide a written or printed pay stub that includes the worker’s pay details.
When the state makes use of a particular delivery method (for example, on the paycheck), the employer has to secure the consent of the worker. If employers in an opt-out states – Delaware, Minnesota and Oregon, implement a paperless pay system, their employees must be able to opt-out so they can go back to receiving their pay information in written or printed pay stubs again.