Pay Stub Best Practices Pay Off
CalChamber’s Employment Law Blog Gail Cecchettini Whaley
Your company’s pay stub is more than just a piece of paper. For California employers, the pay stub (referred to as a wage statement) is an important legal requirement. When California employers pay wages, they must provide employees with an accurate, itemized wage statement; either as a pay stub or a separate written document. Failure to comply may result in penalties or lawsuits.
The obligation to produce an accurate pay stub with all of the legally required information falls on the employer.
The California Labor Code requires employers to include nine categories of information on wage statements, as well as information on paid sick leave (Labor Code secs. 226, 246). Piece rate employers also have additional pay stub requirements (Labor Code sec. 226.2).
Your company will ultimately be responsible for any inaccuracies. If you use a payroll company, don’t simply assume that the wage statements your provider prepares are accurate. Review the wage statement for completeness and accuracy. It’s also good practice to check in with your payroll company to make sure that all legal requirements are met.
The “What’s In Your Wage Statements?” white paper is available for download for non-CalChamber members. While CalChamber members can download the white paper from HRCalifornia (log-in required). CalChamber members can also use the SmartStub, an interactive tool to help determine what information must be on your wage statements.