Under California Labor Code Section 226, an employer is required to provide their employees with an accurate itemized pay statement in writing at the time of each payment of wages. The Labor Code refers to these documents as “itemized statements”, but they are commonly referred to as paystubs, earning statements and wage statements. The paystub needs to include nine specific items, under Labor Code 226, to ensure that on its face it is California compliant.
As an employer, it is important to ensure compliance with the Labor Code requirements. Employers should audit paystubs to minimize their legal risk. Even very small technical errors on the paystub, such as providing a logo of the company instead of the written name & address, can result in substantial liability.
Additionally, it is also important to make sure your company is complying with the Labor Code because the paystub provides an official record of payments to the employee, whether the employee was properly compensated for the worked performed, an indication that the employee paid all required taxes, and that the employer withheld the correct amount for all other deductions.
Improper or non-compliant paystubs could lead an employer to incur substantial penalties each time a paystub is inaccurate. To ensure that your paystubs are CA labor law compliant and to audit your policies and practices to minimize your legal risk, contact the Employer Lawyers at Chauvel & Glatt.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500 for legal assistance near you.