Answer: There is no federal law requiring an employer to issue paper paystubs. The Fair Labor Standards Act (FLSA) does require that employers keep accurate records of hours worked and wages paid to employees. However, the FLSA does not require an employer to provide employees with pay stubs.
State requirements vary. Generally, employers can pay wages in cash or by check. There are some states with no state laws or regulations regarding direct deposits. Check with your state department of labor, workforce commission, or similar agency to determine if there are regulations regarding direct deposit and whether or not a paper paystub must be issued to each employee receiving wages via direct deposit.
References
- Federal Requirements: http://www.dol.gov/elaws/faq/esa/flsa/018.htm
- State Labor Departments: http://www.dol.gov/whd/contacts/state_of.htm
- State Pay Day Requirements: http://www.dol.gov/whd/state/payday.htm
- Article from the Small Business Administration (SBA): Setting up a Payroll System: A 10 Step Guide for Small Business
Originally published by: Laura Kerekes
