Know and Comply: California’s Itemized Paystub Requirements

Failing to list each required paystub item – nine basic ones and up to another seven for piece pay recipients – for every worker and in every payroll period can subject a California employer to potentially devastating damages and civil penalties.  For example, a trucking company employing 50 drivers and five office staff could find itself facing up to $1,000,000 in such damages and penalties for the simple – and inadvertent – omission of its address on the stubs over the space of just 12 months.

A.  The First Nine Required Pay Stub Items: Labor Code 226(a) specifies the basic items for all earnings statements (paystubs):

(1) Gross wages earned;
(2) Total hours worked (except salaried exempt employees);
(3) Piece rate units and rate, if applicable;
(4) All deductions, including taxes, disability insurance, and health and welfare payments (deductions ordered by the employee may be aggregated and shown as one item);
(5) Net wages earned;
(6) The inclusive dates of the pay period;
(7) The name of the employee along with the last four digits of his or her social security number (listing full number is a violation) or an employee identification number;
(8) The name and address of the legal employing entity; and
(9) All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate by the employee.

B. Required Listing of Employee’s Paid Sick Days Benefit:  Under Labor Code 246(i), most employers are also required to list:

(10) Written notice of the amount of available paid sick leave on the employee’s pay stub or a separate writing provided with the employee’s payment of wages.

An employer which provides unlimited sick leave (no maximum cap) may meet this notice requirement by indicating “unlimited” sick leave on such wage statements or separate writings.

C. Further Required Paystub Listing of Rest and Recovery Pay for Certain Employers:   By Labor Code 226.2, an employer utilizing a piece work (production-based) compensation system must list three further items on each pay statement or stub:

(11) Total hours of compensable rest and recovery periods in the applicable pay period;
(12) Rate of compensation for such periods; and
(13) Gross wages paid for such rest and recovery periods during that pay period.

Under Labor Code 226.2(a)(2)(B), and unless a piece work-paying employer includes an hourly minimum wage base rate in its compensation system, that employer will also have to list yet three more items on each pay stub for affected workers:

(14) Total hours of other compensable nonproductive time in the applicable pay period;
(15) Rate of compensation for such time; and
(16) Gross wages paid for that time during the pay period.

This state’s Labor Commissioner lists samples for ● a basic nine-item paystub; and ● a 16-item stub for piece work compensation plans.

See also:

• What’s Even Newer in 2021 California Expands COVID-19 Paid – Detailed, Retroactive Requirements for Employers with 26 or More on Payroll (April 9, 2021)
• Minimum Wage Laws, a History  (April 2, 2021)
• Workplace Rhythm & Cues – Our Employee Policy Handbook & Forms for 2021 – Including Updated COVID-19 Guidelines (January 21, 2021)
• What’s New In 2021: California Minimum Wage Increases (December 23, 2020)

For further assistance, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

May 6, 2021