Finding Parallels Between Requirements and Life

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.

The Fair Labor Standards Act (FLSA) does not require employers to provide pay stubs, but it does require them to keep accurate records of their employees’ wages and hours worked. 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 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. Such states are:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require Pay Information ACCESS

On the other hand, there are states that do require employers to furnish statements that detail employees’ pay information. But it is unnecessary to put the pay statement in traditional written form or 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. Anyhow, workers have to 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. 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 employers’ lookout to guarantee that the electronic pay stubs are accessible to employees and can be printed anytime.

Again, there could be extra items that some state agencies need, such as the consent of an employee to receive the pay stub digitally. 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

Right now, the state of Hawaii is the only state where employees must consent to employers’ implementation of a digital or electronic 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 makes use of a particular delivery method (for example, on the paycheck), the employer has to secure the consent of the worker. 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.