Effective April 8, 2025, Ohio will implement the “Pay Stub Protection Act,” introducing specific requirements for employers regarding employee pay stubs. This legislation mandates that employers provide detailed pay stubs to employees, ensuring transparency in wage calculations and deductions.
Key Requirements of the Pay Stub Protection Act:
- Itemized Earnings and Deductions: Employers must furnish pay stubs that clearly outline gross wages, net wages, and all deductions made during the pay period.
- Accessible Format: Pay stubs should be provided in a format that is easily accessible and understandable to all employees.
- Timely Distribution: Employers are required to distribute pay stubs on or before each payday, ensuring employees have immediate access to their wage information.
Implications for Employers:
Non-compliance with the Pay Stub Protection Act can result in penalties, including fines and potential legal action from employees. Employers should review and, if necessary, update their payroll processes to ensure adherence to the new requirements.
Recommendations for Compliance:
- Review Current Payroll Practices: Assess existing payroll systems to ensure they can generate pay stubs that meet the Act’s criteria.
- Educate HR and Payroll Staff: Provide training to relevant personnel about the new requirements to ensure accurate and compliant pay stub generation.
- Communicate with Employees: Inform employees about the forthcoming changes to their pay stubs, highlighting the enhanced transparency and detail.
By proactively addressing these requirements, employers can ensure compliance with Ohio’s Pay Stub Protection Act and promote a transparent workplace environment.
For more information or assistance with compliance strategies, please contact Nick Birkenhauer at DBL Law.