Federal labor law does not require employers to provide pay stubs (also called pay statements) to employees. However, many states have their own pay stub laws that do require you to supply them.
Even if you live in a state without any pay stub requirements, the Fair Labor Standards Act (FLSA) does require you to maintain records about payments to nonexempt employees, including: dates and hours worked, rate of pay, and payments made for specified pay periods—among other requirements. Check out the Department of Labor’s webpage for a full list of needed records.
Use this article to get a better understanding of your pay stub requirements as an employer, and whether you should provide them, even if you’re not legally required to do so.
What are your employee’s state pay stub requirements?
Some state laws do require employers to provide pay stubs. However, it depends on the laws of the state where your employee works. Below, we break down the three types of pay stub actions their state may require.
Does your employee live in a state with no requirements?
If so, you don’t have to provide any kind of paycheck stub to this employee. States with no pay stub requirements include:
Alabama | Arkansas | Florida |
Georgia | Louisiana | Mississippi |
South Dakota | Tennessee |
Does your employee work in an “access state”?
An "access state" is a state that requires employers to give employees access to their pay stub information, but doesn't necessarily require them to provide a printable version. The employee just has to be able to see the information. Access states include:
Alaska | Arizona | Idaho | Illinois |
Indiana | Kansas | Kentucky | Maryland |
Michigan | Missouri | Montana | Nebraska |
Nevada | New Hampshire | New Jersey | New York |
North Dakota | Oklahoma | Ohio | Pennsylvania |
Rhode Island | South Carolina | Utah | Virginia |
West Virginia | Wisconsin | Wyoming |
Do you live in an “access/print” state?
The following states (known as access/print states) allow you to provide either an electronic or paper stub to your employee. If delivered electronically, the employee must have an easy way to download pay stubs for printing.
California | Colorado | Connecticut |
Iowa | Maine | Massachusetts |
New Mexico | North Carolina | Texas |
Vermont | Washington |
Do you live in an “opt-in” or “opt-out” state?
You also need to figure out whether you’re in an “opt-out” or “opt-in” state:
In opt-out states, businesses must provide printed, paper pay stubs to employees who opt out of receiving electronic pay stubs. Opt-out states include:
Delaware
Minnesota
Oregon
In opt-in states, employers must offer printed pay stubs unless an employee consents in writing (opts in) to get the stub electronically. Currently, Hawaii is the only state with this requirement.
Check your state’s Department of Labor website to ensure that your company is compliant with any applicable regulations.
If I am required to provide a pay stub, what needs to be on it?
Pay stub information requirements differ based on the employment laws in your employee’s state and your industry.
Typically, states that require a pay stub require similar baseline information:
Employee name
Employer name and address
Pay period dates (start and end dates)
Gross wages earned (also called gross pay or gross earnings)
Itemized deductions
Net wages
Number of hours worked (for non-exempt/hourly employees)
Some states add extra requirements, such as:
Social security number (last 4 digits)
Regular and overtime hours listed separately
Every deduction itemized individually (no bundling into categories like "benefits")
Employer EIN
Be sure to check your employee’s state’s specific laws to know what information should be included in each employee’s pay stub.
What are the penalties for failing to provide a pay stub in a state that requires them?
Penalties for violating pay stub laws vary by state, and the penalties can add up quickly. In California, for example, an employee can recover $50 for the first pay period with a violation, then $100 for every subsequent pay period the violation continues—up to a cap of $4,000 per employee. If there are violations with more than one employee, the cost can become significant.
Other states have their own penalty structures—some cap violations per instance, others per workday, and some scale up for willful or repeated violations.
Some states allow employers to fix certain pay stub errors before penalties apply, but the rules for what and how errors can be fixed are narrow and technical, and they vary by state. If you've received a formal notice about a pay stub violation, it's worth talking to an employment attorney quickly rather than trying to come up with your own fix.
Pay stub errors need to be caught quickly. That's one reason a payroll platform can be worth it, even if you’re only paying one or two employees.
What are the benefits of providing pay stubs?
Even if you’re not required to provide pay stubs, doing so can help you in the long run. It’s likely to save you time answering questions that employees may have about how hours and deductions are calculated. Additionally, employees may need pay stubs to prove their income in a number of normal life events, like applying for a mortgage or a line of credit for a car purchase.
To ensure your pay stubs and payroll are compliant with state and federal laws, the best thing to do is to consult a CPA or rely on your small business payroll provider.
Frequently Asked Questions
Is a pay stub the same thing as a paycheck?
No, a pay stub and a paycheck are different. A pay stub (also known as a pay statement or wage statement) is the document that shows how that payment was calculated, while a paycheck is the actual payment an employee receives. A pay stub breaks down gross employee wages, deductions, and net pay for a specific pay period. Some states require employers to provide a pay stub or access to a pay stub with every paycheck, others don't.
What information must be included on a pay stub?
Requirements vary by state, but most states that require pay stubs ask for the same baseline fields: employee name, employer name and address, pay period dates (start and end dates), gross wages (gross pay/gross earnings), itemized deductions, net wages, and hours worked for non-exempt employees. Some states require more pay information, such as listing the last four digits of the employee's SSN, separating regular and overtime hours, or itemizing every deduction individually rather than grouping them.
Can employers provide pay stubs electronically even if the employee prefers paper?
It depends on the state. In most "access" and "access/print" states, electronic delivery is allowed by default. But in opt-out states (Delaware, Minnesota, Oregon), employees can request paper stubs at any time, and in Hawaii—the only opt-in state—employers must provide paper stubs unless the employee agrees in writing to receive them electronically.
How long must employers keep copies of pay stubs or payroll records?
Federal recordkeeping rules under the FLSA require employers to keep payroll records for at least three years, while the IRS requires employment tax records to be kept for four years. Some states set longer retention periods based on where the employee works, not where the employer is headquartered. For example, New York and Hawaii require six years, and Tennessee requires seven. When rules overlap, employers should follow whichever retention period is longest for that employee's state.
Do independent contractors get pay stubs?
No, independent contractors typically don't receive pay stubs since pay stub laws generally apply to employees, not contractors. Contractors instead receive a Form 1099-NEC at year-end summarizing their total payments. Self-employed workers who need proof of income for a loan or lease application often generate their own pay stub-style documents instead.
