Pay Stub Laws: What Employers Must Provide by State

Are all employers legally required to hand out pay statements according to the pay stub laws? In some states, the law demands that a pay stub be sent to all employees. At the same time, we also have some states that do not require a pay stub. 

When it comes to pay stub format, some insist on paper copies; others let you pull up a digital version. Because rules differ from one state to the next, it's smart to learn your own state's requirements. 

In this guide, you'll get the lowdown on federal guidance and see which states mandate stubs and in what format. Find out exactly what details must appear on every stub and if your pay stub format is legally compliant. 

What Is a Pay Stub?

A pay stub is the document you receive each time you're paid. It breaks down how your gross pay, what you've earned before deductions, turns into the amount in your bank account. It helps you verify that you've been paid the correct amount for the work you did during the pay period. 

Pay stubs also serve as proof of income when you apply for loans, rent an apartment, or file your taxes. Missing or incorrect stubs can delay critical financial decisions and transactions. Most employers provide pay stubs either in paper form or through an online portal. If you don't receive one automatically, it's perfectly reasonable to ask your payroll department. 

What Is the Federal Pay Stub Law

At the general level, there are federal laws that apply to your pay stubs. Legally, employers are not required to hand out pay stubs to their employees. However, they are required by the law to keep a record of every employee on their payroll. 

It not only helps protect the interests of the employees but also serves as a reliable record for labor audits. For every record of an employee, there is certain essential information that should be included:

• Employee Identification Details: The record should include details on the employee’s identity. Their full name, contact details, and their social security number are non-negotiable. These details must align with the IRS records.

• Pay Rate and Payment Type: Pay rate and payment type should also clearly state how much an employee earns. The wages, whether salary-based or hourly, are included. 

• Daily and Weekly Hours Worked: Employers are also required to keep track of the number of hours an employee works per day or week. These records help to track overtime work hours and ensure the pay rate aligns with hours worked.

• Gross Pay for Each Paycheck: The gross pay for every employee is the total amount they make before deductions are taken out. That gross amount is needed for audits and also by employees for lease or loan applications. 

• Deduction and Add-Ons: The deductions are made on behalf of the employee by an employer in most states. These deductions include taxes, benefits, contributions, bonuses, and reimbursements. 

• Exact Pay Period Dates: An employer is legally required to outline the specific pay period and cycle. So employers know how to calculate their pay period and what to expect in the end.

These records are more than just paperwork. According to the federal pay stub laws, an employer must keep all documents for a minimum of three years. 

Pay Stub Requirements by State

Getting a pay stub with your paycheck is a standard procedure. That is not always the case, as pay stub laws vary from state to state. While federal law does not mandate the handing out of stubs, pay stub requirements by state say something different. 

Currently, many states require employers to turn in some form of pay statement. It could be digital or paper stubs, depending on the pay stub laws of that state. 

States That Require Employers To Provide a Pay Stub

In 26 states, your employer must give you a pay stub—plain and simple. These laws don’t always say the stub has to be printed. But they do say it has to be accessible.

These states include Alaska, Arizona, Idaho, Illinois, Indiana, Kansas, Kentucky, Maryland and Michigan. It’s the same for Missouri, Montana, Nebraska, Nevada and New Hampshire. Other states like North Dakota, New Jersey, New York, Oklahoma, Pennsylvania, Rhode Island, South Carolina and Utah also have this rule. Virginia, West Virginia, Wisconsin and Wyoming are also included.

States With No Pay Stub Laws

There are nine states that don't have a clear rule for employers when it comes to handing out employees’ pay stubs. Your employer might still decide to hand out stubs, but it is not a legal requirement. They might do this if it is a part of your company policy. If they don't, you can choose to take a look at your payroll file, which you have legal rights to. 

Among the states are Alabama, Arkansas, Florida, Georgia and Louisiana. Others include Mississippi, Ohio, South Dakota and Tennessee. 

States Where You Must Get a Written or Printed Pay Stub

In some other states, the decision to hand out pay stubs to employers is non-negotiable. All employees must receive a pay statement with the details of their earnings. It could be sent out on paper or in digital format. Employers who use digital software to track payroll still have to make the stub accessible to you for download. 

They include states like California, Colorado, Connecticut, Iowa, Maine and Massachusetts. Other states include New Mexico, North Carolina, Texas, Vermont and Washington.

The main pay stub requirement by state in this category is that employees must have access to their stubs. It must be in a format that can be physically accessed or printed out and shared. 

Employee-Choice Pay Stub Laws

In some states, the decision on how to receive stubs and in what format falls on the employees. The pay stub laws allow employees to opt in or opt out of a preferred method at will. Employers are required to get the consent of their employees and follow their preferred choice. 

Opt-Out States

Here, employees can choose to decline a particular format, mostly electronic pay stubs:

• Delaware

• Minnesota

• Oregon

Opt-In States

Pay stub laws require employers to get the consent of their employees before they can send electronic stubs:

• Hawaii

In these states, a sudden switch in stub delivery method is not allowed and usually attracts a penalty. 

What To Do if Your Employer Won’t Provide a Pay Stub

Even though the pay stub laws give specific rules to employers, some of them may still refuse to provide stubs. There are also cases where stubs are either supplied in the wrong format or with incorrect information. So, what can you do if your employer proves difficult with the pay stub requirement by the state?

• Make a Written Request: The first step would be to make an official request if you do not receive it from your employer. This can be done to your HR department or payroll manager. Make sure it is a written request, either in the form of an email or a letter, requesting the stub. 

• Contact Your State Labor Agency (SLA): If, after a formal written request, the pay stub laws are still not withheld, you can contact the SLA. It is advisable to give at least 5 to 10 business days before contacting the State Labor Agency. 

• File a Formal Complaint: When the first two steps do not work out in your favor, you can file an official complaint. Your state can order an investigation or demand that your employer provide all requested stubs with fines attached.

What Happens When You Violate Pay Stub Laws?

There are real penalties and fines attached to defaulting on the pay stub requirements by the state. These penalties

• Fines and Penalties: Most states require employees to pay fines depending on the stub violations they are charged with. For example, up to $100 fines apply for every missing stub in California. 

• Back-Pay and Interest: If it is discovered that your pay stub is incorrect with misreported hours and false deductions. Your employer is required by law to pay back all wages as well as interest on all unpaid amounts.

• Legal Action and Attorney Fees: In many states, violating pay stub laws can lead to a full-blown lawsuit. These states allow employees to sue employers for violations of the pay stub laws.

To Wrap It Up

Pay stubs aren't just paperwork—they're your proof of income, taxes, and benefits. If your employer refuses to provide them in the correct format, it raises a lot of questions. With good knowledge of the pay stub laws, employers and employees are aware of their part to play. 

A clear, IRS-compliant pay stub makes any financial process easier. Whether applying for a loan, renting an apartment, or filing taxes. If you ever need a backup or professional-grade pay stub, our pay stub generator is here to help. Craft accurate, compliant statements in seconds!