What are the California pay stub (wage statement) requirements?

Posted on July 14, 2023

In California, employers are legally required to include certain information on the pay stub they issue to workers. This is to ensure that wages, deductions and payee information is correct and complies with state law. If some of the information is missing or incorrect, it can lead to a wage and hour lawsuit. Workers also have a right to inspect their payroll records.

What has to be on a California pay stub?

California employers have to provide an itemized wage statement or pay stub to their employees. These employee pay stubs must be provided on paydays or at least semi-monthly.¹ Under California Labor Code section 226(a), these pay stubs must include the following information in the itemized statement:

• Employee identification: Your full name and either your last 4 digits of your Social Security Number or your employee identification number
• Employer identification: The company’s name and address
• Pay period: The inclusive dates of the pay period covered by the wage statement
• Hourly wage: In California, this can be no less than $15.50 an hour
• Hours worked: The total number of hours worked in the pay period at each rate and how many of them are overtime hours, if any (hours worked is not necessary for salaried or exempt employees)
• Gross wages: This is everything earned prior to deductions being taken out – in addition to standard wages, overtime, and fixed salaries, gross wages include commissions, piece-rate payments, project/task-based payments as well as room, board, and clothing (if received as part of compensation)
• Deductions: This includes itemized deductions, social security and tax withholdings, retirement contributions (such as 401Ks), health insurance premiums, etc.
• Net wages: This is what is left after all the deductions have been subtracted from your gross wages
• PTO: The amount of accrued paid vacation time or accrued sick time earned over the pay period (employers can put “unlimited” if applicable).²

Piece-rate workers

If you are paid on a piece-rate basis rather than hourly, the wage statement has to include:

• the applicable piece rate, and
• the number of piece rate units that you produced.

When applicable, pay stubs for piece-rate workers must also include:

• the rate for hours paid in each category,
• total hours worked in compensable nonproductive time,
• total hours of compensable recovery and rest breaks, and
• gross wages for nonproductive time, recovery and rest breaks.³

If your employer is a temporary service employer, often known as a temp agency, your pay stub must include the rate of pay and hours worked for each assignment.⁴

All of this information must be included on your pay stub even if you are paid with cash.⁵ However, wage statements tend to be a detachable part of your paycheck or the direct deposit statement that is normally provided with your payment of wages.

If any of this required information is missing or is incorrect, it may violate California’s wage and hour laws. You may have legal recourse.

What if I am an exempt employee?

If you are an exempt employee, your pay stub does not need to include information about the number of hours that you worked during the pay period.

Exempt employees earn a salary rather than an hourly wage. They are also exempt from many wage and hour laws in California. For example, they are not entitled to overtime pay.

To qualify as an exempt employee under California employment law, you must meet the requirements for an exemption, like the:

• administrative exemption,
• executive exemption,
• professional exemption, or
• computer professional exemption.

These generally require that you make well above the minimum wage and perform certain job duties.

If you have been misclassified as exempt, you may be able to file a misclassification lawsuit. California employees are frequently misclassified as exempt by employers who want to minimize their costs.

What if my employer is not complying with these requirements?

If your pay stub is missing some information or if the information is incorrect, it may be a paystub violation. These are violations of California’s labor laws. You can file a wage and hour lawsuit under the Private Attorneys General Act (PAGA)⁶ or file a claim with the labor commissioner of the California Division of Labor Standards Enforcement (DLSE) if:

• your employer knowingly and intentionally failed to comply with the state of California’s pay stub requirements, and
• you suffered an injury from that failure.⁷

You suffer an injury from this failure to comply with the law whenever you:

• do not receive a wage statement or pay stub at all, or
• cannot promptly and easily ascertain whether there is missing or incorrect information from the wage statement, alone.⁸

If this is the case, you can recover:

• civil penalties or your unpaid wages, whichever is higher,
• your attorneys’ fees, and
• the costs of filing the lawsuit.⁹

Those civil penalties are $50 for the initial paystub violation and $100 for each subsequent pay period with a violation. You can recover a total of up to $4,000 in pay stub violation penalties.¹⁰

Many of these cases turn into class action lawsuits. If your employer is not complying with its wage statement obligations for you, there is a good chance that your coworkers are also missing employee’s wages, as well.

Before taking these steps, it is crucial to get the legal advice of an employment attorney from a reputable law firm.

Does my employer have the right to fix errors on the pay stub?

In some cases, your employer is entitled to the chance to correct pay stub errors. Under California state law, they only have this opportunity if the error is to the:

• dates of the pay period on the wage statement, or
• the name and address of the legal entity that employs you.¹¹

Your employer has a 33-day window to cure these mistakes from the time you notify them of the violation. They then have to provide you with a fully compliant pay stub for each pay period covering the 3 years prior to the notice.¹²

Do I have the right to review my payroll records?

If you think that your employer is committing a pay stub violation, it can be helpful to review your payroll records. In California, you have a right to do so.

Both current and former employees can make an oral or written request to review their payroll records. Once received, your employer has 21 days to make them available. Your employer has a legal obligation to keep these records for at least 3 years. You can also request a copy of these records, though your employer can charge a copying fee.¹³

If your employer fails to provide your payroll records, it is an infraction. The penalty is $750.¹⁴

Is there an exemption for household and home services?

Yes. Pay stub laws usually do not apply to situations when a homeowner hires someone to service the home or children, such as contractors, cleaning people, nannies and au pairs.¹⁵

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