Smart Ideas: Requirements Revisited

August 6, 2018 frvionline 0 Comments

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.

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 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 the following:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States Requiring ACCESS to Pay Details

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 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

Certain states require written or printed pay statements to be provided by employers to workers. However, these pay statements need not be delivered along with the check or through another method. 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.

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

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