Overwhelmed by the Complexity of Work? This May Help

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.

According to the Fair Labor Standards Act (FLSA), employers need not give employees pay stubs, but they do have to keep accurate records of these workers’ hours rendered and corresponding wages. Thus, before you decide how to go about paying your staff, make sure you’re following state compliance.

States with NO Pay Stub Requirements

At present, there are nine states that do not require employers to give out pay stubs to employees, but pay stubs may be provided electronically if elected by the employers. Such states are:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require ACCESS to Pay Information

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 those 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 sensible interpretation of the law suggests that employers can meet these states’ pay stub requirements through digital means. At any rate, the digital or electronic pay stubs must be readily accessible to employees.

Take note, however, that while most states have adopted this interpretation, some state agencies may have additional requirements, such as the capability to print the electronic statements.

States Requiring Pay Information ACCESS AND PRINT Capability

In some states, employers must provide employees a printed or written statement detailing the worker’s 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 reponsibility of employers to ensure that their workers have access to the pay stubs and will actually be able to print them.

Yet again, there may be additional items required by some state agencies, like the worker’s consent to receive electronic pay stubs. The above applies in the following states:

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. 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 uses a particular method of delivery (for example, on the paycheck or pay envelope), employee consent is needed for 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.