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. Such states are the following:
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 such states:
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. 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.
Yet again, there may be additional items required by some state agencies, like the worker’s consent to receive electronic pay stubs. Below are the states in which the above applies:
Right now, the state of Hawaii is the only state where employees must consent to employers’ implementation of a digital or electronic pay system. 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 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.