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Paycheck Stub Requirements Per 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. 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 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 such 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. 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 that Require Pay Information ACCESS AND PRINT Capability

Certain states require written or printed pay statements to be provided by employers to workers. 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 employers’ lookout to guarantee that the electronic pay stubs are accessible to employees and can be printed anytime.

Again, there could be extra items that some state agencies need, such as the consent of an employee to receive the pay stub digitally. 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

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. 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.