How I Became An Expert on Taxes

Paycheck Stub Requirements According to 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.

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 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 the following:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States Requiring ACCESS to Pay Details

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 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.

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

In some states, employers must provide employees a printed or written statement detailing the worker’s pay information. 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. 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 uses a particular method of delivery (for example, on the paycheck or pay envelope), employee consent is needed for electronic delivery. 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.