Electronic Paystubs

“I’m signed up with a payroll service that allows my employees to go online and review or print their paystub. This saves me the cost of having paystubs delivered but one of my employees is asking for a printed paystub. Can’t I just tell him to go online and print it?”

My HR Survival Tip

This is one of those gray areas in employment law. The law actually states you must provide paystubs “in writing” with ink but the Labor Commissioner has provided an opinion that electronic versions are fine under certain circumstances.

I know many companies love both direct deposit and electronic paystubs for the cost savings. However, you can’t force an employee into using either of these. It requires their permission.

• If you are using electronic paystubs, check that you at least meet the Labor Commissioner’s requirements:
• Employees can elect to receive from you a paper paystub (without you moaning about the cost).
• Your electronic paystub must include all the legally required information.
• Your employees must have easy access to their electronic paystubs AND they can easily print it.
• You retain those pay records for at least 3 years and the paystubs can continue to be accessed by both current and former employees during that period. (This may require paying your payroll company for long-term access, especially if you change payroll companies).
• You have safeguards in place to ensure confidentiality of the electronic information.

This is one of those situations where technology is moving faster than the law. If your employees don’t have internet access all day so they can easily see their records, you should consider going back to paper paystubs. It’s more expensive but at least you’d be compliant… and that’s definitely worth something.