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:
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:
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:
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.