The 10 Items You Must Include on a Paycheck

The 10 Items You Must Include on a Paycheck

By David DeMoss

We have posted information over the last few weeks on PAGA (Private Attorney General Act) lawsuits, and thought it would be helpful to post information on one of the issues that can be grounds for PAGA lawsuit as well as drive it to grow in penalties. As an employer, it’s important to ensure that you input all the necessary information on your employees’ pay stubs, otherwise you run the risk of a potential (and expensive) class-action lawsuit (In a PAGA case, one employee can report for all employees).  In California, there are 10 mandatory items that you must include on an employee’s wage-earning statement, such as:

  1. Gross wages earned
  2. Net wages earned
  3. Pay period beginning and end dates
  4. Total hours worked by the employee (unless the employee is exempt from overtime)
  5. Employee’s name and last four digits of his or her SSN (you may also use the employee’s identification number in lieu of the SSN)
  6. All deductions made from wages
  7. The number of piece-rate units earned, if applicable
  8. The employer’s legal company name and address
  9. How many days of sick leave an employee has available
  10.  All applicable hourly rates in effect during the pay period as well as the number of hours the employee worked at each hourly rate

In addition, it’s essential to:

  • Keep a copy of employees’ pay stubs for your records and for employee access
  • List any overtime compensation, commissions, or bonuses on their checks
  • Leave in an area on the paycheck for double time and any premiums an employee was paid for a missed meal or rest period

With many paychecks moving to paperless nowadays, you must still make it easy for your employees to access paper copies if need be! Electronic pay stubs only adhere to labor codes if:

  • Employees have a choice to receive paper wage statements at any time
  • All mandatory items are included
  • Employees have access to their records at work while either using company computers or their personal computer, and can print them for free while at work
  • All employee pay stubs are filed for 3 years, and former employees are entitled to print copies upon request.