Paystub Records: What Are The Legal Requirements?
Are you familiar with the legal requirements of pay stub records? The U.S. Department of Labor notes that there are no federal requirements for pay stub records in the Fair Labor Standards Act (FLSA). Companies are just required to keep accurate records of the number of hours worked and monies paid to employees.
Just because there aren't pay stub requirements at the federal level means that you're off the hook. States have their own pay stub requirements. This is critical information if you have employees in different states. You could be violating state regulations without even knowing it. Read on to learn what the pay stub requirements are by state.
What Are Considered to be Accurate Records?
If federal law doesn't require that you provide pay stubs to your employees, what records do you have to keep? Just about all of the information that you'd find on a pay stub. You need a record of the employee's full name and social security number, address, the employee's work hours each day.
You also need to keep a record of the hourly pay, overtime worked, all deductions, the pay period covered and when the payment was made.
Pay Stub Requirements by State
The requirements for pay stub records varies by state. About half of the states require them, while others don't. Still, others let employees opt-in or opt-out.
States that Require Printed Pay Stubs
There are 26 states that require pay stub record. Out of those 26, 11 states require a written or printed pay stub.
- California
- Maine
- North Carolina
- Colorado
- Iowa
- Connecticut
- Massachusetts
- Vermont
- Washington
- Texas
- New Mexico
Some of these states may let you have an electronic version available that can be printed.
States That Require Pay Stub Records
These are the 26 states that require pay stub records. In this case, they can be written, printed, or electronic.
- Alaska
- New Jersey
- Missouri
- West Virginia
- Nevada
- Montana
- Rhode Island
- Pennsylvania
- Arizona
- Idaho
- Nebraska
- New Jersey
- Wyoming
- South Carolina
- Virginia
- Illinois
- Oklahoma
- Utah
- Indiana
- New Hampshire
- Kansas
- Kentucky
- Wyoming
- New York
- Wisconsin
- Maryland
- North Dakota
- Michigan
States such as Oregon, Delaware, and Minnesota let employees opt out of electronic pay stubs and receive paper pay stubs instead. On the other side of the spectrum, Hawaii requires companies to get the employee's consent to distribute pay stubs electronically.
States That Do Not Require Pay Stubs
In these states, you can choose to give your employees pay stubs, but it's not required by law.
- South Dakota
- Florida
- Arkansas
- Mississippi
- Louisiana
- Tennessee
- Georgia
- Ohio
- Alabama
Again, you do need to keep accurate records according to federal law.
Pay Stub Records Don't Have To Be A Hassle
Your employees might need a paystub. They might need them to prove income, apply for a mortgage, or obtain a visa. Knowing what the requirements are, can save your business from facing harsh penalties from state labor boards. You'll want to avoid being in the position of getting audited by the Department of Labor.
Be sure to also check out some interesting facts about payroll laws. Now save yourself the extra headache by using the paystub maker. Get started now!