What You Should Know About Work This Year

Paycheck Stub Requirements Per State

Close to 100 percent of workers are now receiving their pay by direct deposit, but paper checks are still used by several small businesses today.

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. Therefore, prior to choosing how to go about employee payments, make state compliance a priority.

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. Such states are:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require ACCESS to Pay Information

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 such 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

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. Reasonable interpretation of this law says that compliance by employers with this particular pay stub requirement is possible when they provide electronic pay stubs which employees can print on their own devices. 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. Below are the states in which the above applies:

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

Opt-In/Opt-Out

Right now, the state of Hawaii is the only state where employees must consent to employers’ implementation of a digital or electronic pay system. Employers in this state have to provide a printed or written pay statement which contains details of the worker’s pay information, unless the worker has agreed beforehand to get their pay statement in digital format.

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.