Why Business Aren’t As Bad As You Think

State by Stae Paycheck Stub Requirements

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.

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 Where NO Pay Statements Are Required

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. These states include:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States Requiring ACCESS to Pay Details

On the other hand, some states actually require employers to give out statements detailing pay information of workers. But it is not necessary to provide the pay statement on paper. 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 sensible interpretation of the law suggests that employers can meet these states’ pay stub requirements through digital means. 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 that Require Pay Information ACCESS AND PRINT Capability

Some states require employers to furnish employees a written or printed pay statement that contains their pay information. But these pay statements do not necessarily have to be delivered together with the check or in another format. Reasonable interpretation of this law says that compliance by employers with this particular pay stub requirement is possible when they provide electronic pay stubs which employees can print on their own devices. 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. 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

As of today, only the state of Hawaii requires employee consent before an employer can implement a digital pay system. Unless the employee has agreed to receive electronic pay statements, the employer has to furnish them with a printed or written pay stub.

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 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.