Practical and Helpful Tips: Paycheck

Paycheck Stub Requirements Per 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.

Employers are not required by the Fair Labor Standards Act (FLSA) to provide pay stubs, but they are required to keep accurate records of their workers’ wages and hours rendered. Hence, before deciding how to go about payments for your personnel, see to it that you’re following state compliance.

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 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. However, for the pay statement to be on paper is not a must. Here are the said 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 logical understanding of the law suggests that compliance with pay stub requirements in this states can be done electronically. At any rate, the digital or electronic pay stubs must be readily accessible to employees.

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. 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 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. 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

At present, Hawaii is the only state which requires worker consent before an electronic pay system can be implemented. 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.