If You Read One Article About Work, Read This One

Paycheck Stub Requirements According to 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. Hence, before deciding how to go about payments for your personnel, see to it that you’re following state compliance.

States with NO Pay Stub Requirements

There are currently nine states where no pay stubs are needed from employers, but pay stubs could be provided in a digital format if desired by the employers. These states include:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require Pay Information ACCESS

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:

Alaska
Arizona
Idaho
Illinois
Indiana
Kansas
Kentucky
Maryland
Michigan
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New York
North Dakota
Oklahoma
Pennsylvania
Rhode Island
South Carolina
Utah
Virginia
West Virginia
Wisconsin
Wyoming

A tenable interpretation of the law proposes that compliance with these states’ pay stub requirements is possible through digital methods. 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. The pay statements though are not strictly to be given with the check or in another form. 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 employers’ lookout to guarantee that the electronic pay stubs are accessible to employees and can be printed anytime.

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:

California
Colorado
Connecticut
Iowa
Maine
Massachusetts
New Mexico
North Carolina
Texas
Vermont
Washington

Opt-In/Opt-Out

As of today, only the state of Hawaii requires employee consent before an employer can implement a digital pay system. 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 an employer implements a paperless pay system in opt-out states, namely, Delaware, Minnesota and Oregon, they should be able to opt out to start getting their paper pay stub again.

More reading: you can check here