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.

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:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

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:

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 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:

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. 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.