Smart Ideas: Requirements Revisited

Paycheck Stub Requirements Per 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.

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

States Where NO Pay Statements Are Required

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. 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 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 tenable interpretation of the law proposes that compliance with these states’ pay stub requirements is possible through digital methods. 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

Certain states require written or printed pay statements to be provided by employers to workers. 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 job of employers to make sure that their employees are able to access the pay stubs and can print them.

Again, some state agencies may have additional requirements – for example, the worker consenting to receive his or her pay stubs electronically. 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.

If the state chooses a certain means of delivery, like on the pay envelope or pay check, the employee must agree to electronic delivery. Should employers in opt-out states – Minnesota, Oregon and Delaware – go for a paperless pay program, workers should have the option to go back to the traditional system that provides them paper pay stubs.

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