Paycheck Stub Requirements According to State
Though almost all employees now receive their salaries through direct bank deposit, many small businesses that have stuck with using 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. These states include:
States Requiring ACCESS to Pay Details
In some states, on the other hand, employers are required to furnish employees with pay stubs that break down their pay information. But it is not necessary to provide the pay statement on paper. Here are the said states:
A logical understanding of the law suggests that compliance with pay stub requirements in this states can be done electronically. 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
In some states, employers must provide employees a printed or written statement detailing the worker’s pay information. However, these pay statements need not be delivered along with the check or through another method. The logic is that an employer can comply with this particular requirement by giving workers electronic pay stubs that they can print. It is the reponsibility of employers to ensure that their workers have access to the pay stubs and will actually be able to 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. Unless the employee has agreed to receive electronic pay statements, the employer has to furnish them with a printed or written pay stub.
If the state chooses a certain means of delivery, like on the pay envelope or pay check, the employee must agree to electronic delivery. 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.