The Art of Mastering Requirements

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.

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

States with NO Pay Stub Requirements

At present, there are nine states that do not require employers to give out pay stubs to employees, but pay stubs may be provided electronically if elected by the employers. Such states are the following:

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 logical understanding of the law suggests that compliance with pay stub requirements in this states can be done electronically. 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

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 job of employers to make sure that their employees are able to access the pay stubs and can print them.

Yet again, there may be additional items required by some state agencies, like the worker’s consent to receive electronic pay stubs. 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. 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. 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.