State law dictates whether you can require employees to collect their pay through direct deposit. The laws are similar with direct deposit. Since the laws vary across all 50 states, the takeaway for employers is to ensure they are in compliance based on where the employees works. Where state law does not expressly outline the requirements, reasonable interpretation is that employees must at least be able to access and view their pay stubs. In the states that require pay stubs, in general, there are no specifications that they be in paper or electronic format. paperless pay stubs, leaving the decision up to the employer. Some states have no requirements regarding paper vs. Although most states require pay stubs, some allow electronic access to them, some say that the employee must have the option to print them, and some say you must receive employee consent to go paperless. Whether or not you can require paperless pay stubs comes down to the state the employee works in.
Rather, employers are required to keep accurate recordkeeping of hours worked and wages paid.
The Federal Fair Labor Standards Act (FLSA), does not require an employer to provide pay stubs to employees. Paperless pay stubs are convenient in many ways, but are they legal? The short answer is, it depends where you work.