Determination

• Many states have their own wage and hour laws, which include provisions that federal law does not cover. If state law mandates that employees should receive a pay stub, the employer must comply. If the state does not have this requirement, an employer does not have to give employees a pay stub, except if they have a labor union that negotiated one for them. When applicable, the employer issues the pay stub according to the required frequency and with the information that state law specifies.
  
  

Required Data

• If a pay stub is required, the employer can contact its state labor department for its policies. For example, an Arizona employer is required to give a pay stub only to employees who are paid via direct deposit; the stub should include the employee's earnings and deductions. A California employer is required to give an itemized wage statement to all employees each time they are paid or semimonthly. The statement can be attached to the employee's paycheck or written as a separate document and should include pertinent data, such as the employee's gross wages, total work hours, salary (if applicable), deductions listed separately or as a total amount, pay period dates, the last four digits of the employee's Social Security number or her employee identification number, and her net income.
  
  

Penalties

• Pay stub penalties vary by state. For example, in California, an employer that denies employees a paycheck stub can face a penalty of $50 for the initial pay period violation, and $100 for each subsequent violation. If the employer willfully broke the law and caused the employee to suffer damages, the latter may be entitled to the greater of all damages suffered or $50 for the first violation and $100 for subsequent violations, up to $4,000. The employer may have to pay the employee all awarded costs plus reasonable attorney fees, if applicable. A California employer can also be required to pay a current or former employee a penalty of $750 for refusing to allow him to inspect or copy his wage statement records within 21 days of the request.
  
  

Considerations

• Many employers choose to give employees a pay stub that includes year-to-date deductions, whether or not state law requires it. Providing a paycheck stub reduces the likelihood of employees becoming confused whenever they're paid, and comes in handy during tax season. If an employee does not receive her W-2 form in time, she can use her last check stub to file her income tax return.