Ohio businesses, take note: A new state law requires employers to provide employees with detailed earnings and deductions statements.
Before this, Ohio was one of few states where employees did not have the right to receive pay stubs. House Bill 106, now the Pay Stub Protection Act, seeks to promote transparency and accountability by requiring this wage documentation.
What the Pay Stub Protection Act Requires
Ohio employers must provide employees with written or electronic pay statements for every pay period. These statements must include:
- The employee's name and address,
- The employer's name,
- Total gross and net wages for the pay period,
- The amounts and purpose of all additions or deductions from wages, and
- The pay date and period covered.
For hourly employees, the statements must also include:
- Total hours worked,
- Hourly wage rate, and
- Overtime hours worked (if applicable).
Employee Rights and Employer Obligations
If an employee does not receive their pay stub, they can submit a written request to their employer. Employers have 10 days to comply. Failure to do so allows the employee to file a report with the director of the Ohio Department of Commerce. Employers found in violation may face corrective actions, including posting a written notice on their premises.
What This Means for Ohio Employers
The Pay Stub Protection Act will go into effect on April 8, 2025. To prepare for compliance, employers should take the following steps to ensure their payroll systems align with the new requirements:
- Update payroll processes to include the required details.
- Train HR and payroll staff on compliance requirements.
- Implement systems for issuing pay stubs electronically or physically.
This law promotes fair labor practices and helps employees better understand their earnings. By ensuring compliance with this new law, Ohio employers can avoid potential violations while demonstrating commitment to transparency within their workforce.
