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.
According to the Fair Labor Standards Act (FLSA), employers need not give employees pay stubs, but they do have to keep accurate records of these workers’ hours rendered and corresponding wages. Therefore, prior to choosing how to go about employee payments, make state compliance a priority.
States Where NO Pay Statements Are Required
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:
States that Require Pay Information ACCESS
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:
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 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. 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 reponsibility of employers to ensure that their workers have access to the pay stubs and will actually be able to 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:
At present, Hawaii is the only state which requires worker consent before an electronic pay system can be implemented. 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. 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.