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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. 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 presently nine states with no requirement for employers to hand out pay stubs to workers, but if chosen by the employers, pay stubs may be given in electronic format. These states include:

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 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 tenable interpretation of the law proposes that compliance with these states’ pay stub requirements is possible through digital methods. At any rate, the digital or electronic pay stubs must be readily accessible to employees.

Take note, however, that while most states have adopted this interpretation, some state agencies may have additional requirements, such as the capability to print the electronic statements.

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. 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 job of employers to make sure that their employees are able to access the pay stubs and can print them.

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

At present, Hawaii is the only state which requires worker consent before an electronic pay system can be implemented. Except when the employee consented to the paperless method, the employer is required to provide a written or printed pay stub that includes the worker’s pay details.

When the state makes use of a particular delivery method (for example, on the paycheck), the employer has to secure the consent of the worker. 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.