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Should employers be required to provide pay stubs to employees?

On Behalf of | Jun 26, 2023 | Employment Law |

In an era of technology and transparency, being able to track and manage your income is vital. Pay stubs play an important role in the financial lives of employees, whether it is to keep track of pay or use them to receive social services. Despite this, some states, including Ohio, do not require employers to provide pay stubs to their employees.

An Ohio House committee is considering proposed legislation known as the Pay Stub Protection Act and intends to change that. But should legislators really require employers to provide pay stubs to their employees?

A tool for transparency

Pay stubs offer you a transparent breakdown of your earnings. You can see not just your gross income, but also deductions like taxes, and additional compensation, such as overtime pay. This clarity is essential to ensure your employer is paying you correctly and you are not a victim of wage theft.

Understanding your pay stub can give you control and knowledge over your financial situation. This information can assist you in financial planning, applying for loans or rentals and even resolving potential disputes about your income.

The Pay Stub Protection Act

The Pay Stub Protection Act proposes that employers provide their employees with either paper or electronic pay stubs. The pay stubs must contain specific information, including your name, address, employer’s name, total gross wages, total net wages and detailed deductions or additions to your wages. This transparency is what you need to ensure fair compensation.

If your employer fails to provide a pay stub upon request, the Ohio Director of Commerce can step in to rectify the situation. While the bill does not suggest fines or jail time for non-compliant employers, they might have to display the violation publicly on their premises for a ten-day period.

Requiring employers to provide pay stubs offers clear benefits to you as an employee. Therefore, adopting policies like the Pay Stub Protection Act is not just an important step, but a necessary one to protect and empower the workforce.

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