Close to 100 percent of workers are now receiving their pay by direct deposit, but paper checks are still used by several small businesses today.
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. 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:
States that Require Pay Information ACCESS
In some states, on the other hand, employers are required to furnish employees with pay stubs that break down their pay information. But it is not necessary to provide the pay statement on paper. Here are those states:
A sensible interpretation of the law suggests that employers can meet these states’ pay stub requirements through digital means. Anyhow, workers have to be able to access the electronic or digital pay stubs.
Keep in mind though that even with most states adopting this interpretation, some state agencies may require more items – for example, the ability to print the electronic pay stubs.
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. However, these pay statements need not be delivered along with the check or through another method. 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.
Again, some state agencies may have additional requirements – for example, the worker consenting to receive his or her pay stubs electronically. Below are the states in which the above applies:
As of today, only the state of Hawaii requires employee consent before an employer can implement a digital pay system. Employers in this state have to provide a printed or written pay statement which contains details of the worker’s pay information, unless the worker has agreed beforehand to get their pay statement in digital format.
If the state chooses a certain means of delivery, like on the pay envelope or pay check, the employee must agree to electronic delivery. If an employer implements a paperless pay system in opt-out states, namely, Delaware, Minnesota and Oregon, they should be able to opt out to start getting their paper pay stub again.