Paperless Pay: What is the Law?

One of the great things about technology is that it has made it easier than ever to create, store, and organize important documents and records. For both employers and employees, payroll and pay stubs matter. You need to keep these records for a sufficient amount of time in order to keep your finances in order and to protect your interests.

Of course, when tracking payroll, we all know how easy it can be to lose paper files. Old employee pay stubs can get tucked into a folder, shoved into a drawer, or otherwise misplaced. You may suddenly realize that you need access to one, but you cannot find it anywhere. This is one reason why paperless pay programs are becoming increasingly popular with companies and workers.

With more and more people being paid through direct deposit, it is often just easier to get an email with your paystub than to have to worry about picking up a letter from your boss or waiting for a copy in the mail. And since you can save money on paper and accounting services, it is just smart business. Even better, with our modern software, you can make your pay stub online in minutes — saving you both time and money.

Though the benefits of paperless pay are very real, management should take note: there are a number of laws that impact pay stubs. Before moving their payroll system over to a fully digital pay, managers should be sure to learn a basic understanding of the relevant federal and state labor regulations.

Know the Law: Understanding Paperless Pay

Under federal labor regulations (most notably the Fair Labor Standards Act (FLSA)), American employers are required to keep accurate payroll records, including records of an employee’s hours worked and their total amount of compensation. However, federal law does not require management to provide pay stubs to employees. Instead, pay stub regulations are controlled by state regulations. As such, before choosing a payroll service or program, it is important to learn the relevant laws in your state. Here, we offer a basic overview of the different regulations across the 50 states.

*Please note that state laws can change relatively frequently. This list is being provided for informational purposes only. Business owners should always confirm that the specific laws in their state have not changed before altering their payroll procedures. Be sure to check with the most recent version of the specific statutes in your jurisdiction.

The No Requirement States

There are nine U.S. states that have no general requirements related to pay stubs. While it is generally advisable for employers in these states to provide pay stubs to workers for organizational purposes, the state does not mandate doing so. Paperless pay and digital pay stubs are a useful and highly cost-effective option for businesses in these states:

  • Alabama
  • Arkansas
  • Florida
  • Georgia
  • Louisiana
  • Mississippi
  • Ohio
  • South Dakota
  • Tennessee

The Pay Stub States

There are more than two dozen U.S. states that require employers to provide workers with pay stubs in ‘some form.’ These states do not require printed pay stubs. Fully electronic check stubs meet the legal requirements in these states. Paperless pay is a great option for employers in:

  • Alaska
  • Arizona
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Maryland
  • Michigan
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New York
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Utah
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

The ‘Print Out’ States

In certain jurisdictions, there are some requirements to ensure that pay stubs are accessible in a printed form. Some of the following states allow for employers to use digital pay stubs if employees have an easy option to get a printed copy as well. Though, there are some states requiring that companies furnish a printed pay stub to every worker. If your firm has employees in any of the following states, it is crucial that you check with your specific location regulations before using fully paperless pay.

  • California
  • Colorado
  • Connecticut
  • Iowa
  • Maine
  • Massachusetts
  • New Mexico
  • North Carolina
  • Texas
  • Vermont
  • Washington

The ‘Opt-in’ and ‘Opt-Out’ States

There are four U.S. states that have adopted either ‘opt-in’ or ‘opt-out’ rules. Employers in Delaware, Minnesota, and Oregon are permitted to use paperless pay. However, these employers must give their employees the option to choose printed pay stubs over paperless pay if they wish to do so. In others, workers can opt-out of paperless pay. Hawaii has the opposite regulation – employees must be offered printed pay stubs – but employers can give them the option to opt-in to fully digital check stubs as an alternative.

Create Your Pay Stub Online Instantly

With Check Stub Maker, our online pay stub service does all of the hard work. The only thing that you need to do is to include some very basic information. With our program, you can create fully digital pay stubs on the site in a matter of minutes. You always have the option to print them out. Our site offers 24/7 customer service and a 100 percent money-back satisfaction guarantee. Give our pay stub service a try today!

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