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Practical and Helpful Tips: Paycheck

Paycheck Stub Requirements According to State

Close to 100 percent of workers are now receiving their pay by direct deposit, but paper checks are still used by several small businesses today.

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. Thus, before you decide how to go about paying your staff, make sure you’re following state compliance.

States that DO NOT Require Pay Statements

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:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require ACCESS to Pay Information

On the other hand, there are states that do require employers to furnish statements that detail employees’ pay information. However, for the pay statement to be on paper is not a must. 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.

However, remember that while interpretation is set in concrete in some states, other state agencies can require more – for instance, the capability to print the digital pay stubs.

States Requiring Pay Information ACCESS AND PRINT Capability

Some states require employers to furnish employees a written or printed pay statement that contains their pay information. 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 employers’ lookout to guarantee that the electronic pay stubs are accessible to employees and can be printed anytime.

Yet again, there may be additional items required by some state agencies, like the worker’s consent to receive electronic pay stubs. The above applies in the following states:

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. 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.

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.