Wage Statements, often known as paystubs, are typically viewed as nothing more than a vehicle to record how much an employee earned and has been paid. Employers, though, can generate liability by issuing incorrect wage statements even though they are paying their employees properly. It is imperative that California employers take all reasonable steps to ensure their employees’ wage statements are accurate. California Labor Code section 226states that wage statements must contain the following information:
- Gross wages earned
- Total hours worked by the employee (with some exceptions)
- The number of piece-rate units earned and any applicable piece-rate if the employee is paid on a piece-rate basis
- All deductions, provided that all deductions made on written orders of the employee may be aggregated and shown as one item
- Net wages earned
- The inclusive dates of the period for which the employee is paid
- The name of the employee and the last four digits of his or her social security number or an employee identification number other than a social security number
- The name and address of the legal entity that is the employer (with some additional requirements for certain employers)
- All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee
In addition to the requirements of Labor Code section 226, employers must show how many days of sick leave an employee has available on the wage statement or on a document issued the same day as the employee’s paycheck. Employers should have their wage statements audited periodically for each class of employees (exempt, non-exempt, commissioned employees, etc.) by competent employment counsel who can make certain that the wage statements correctly reflect all information required by law.
For any other Pay Stubs questions, or unsure about your current Pay Stubs, Please schedule a phone call with our staff by clicking the calendar.
