Ohio has officially joined the majority of states requiring employers to provide detailed pay stubs to employees. The recently enacted Pay Stub Protection Act, which takes effect on April 8, 2025, mandates that all employers, regardless of size, furnish employees with written or electronic wage statements each pay period.
Who Is Affected?
The law applies to any employer with at least one employee working in Ohio. This includes businesses headquartered outside the state if they employ Ohio-based workers.
What Information Must Be Included?
Under the new law, each pay stub must contain the following details:
- Employee’s full name and address
- Employer’s name
- Total gross wages earned during the pay period
- Total net wages paid for the pay period
- A breakdown of any additions to or deductions from wages
- Date of payment
- The pay period covered by the wages
For hourly employees, additional disclosures are required:
- Total hours worked during the pay period
- Hourly pay rate(s)
- Overtime hours worked, if applicable
Compliance and Enforcement
Ohio’s law prohibits employees from directly suing employers over pay stub violations. However, if an employee does not receive a compliant pay stub, they must provide the employer with a written request. If the employer fails to provide a compliant pay stub within ten days of such request, the employee may report the issue to the Ohio Department of Commerce. Employers found in violation will be required to post a notice of non-compliance at the workplace for ten days.
What Employers Should Do Now
Ohio employers should take proactive steps to ensure compliance before the April 8 deadline:
- If an employer handles its own payroll, it should confirm that its pay stubs include all required information.
- If using a third-party payroll provider, verify that their system meets the new requirements.
- Train HR and payroll personnel on the law’s provisions to prevent any compliance issues and how to respond to a written request received by an employee.
While the new law is not expected to cause significant disruptions for most employers, it underscores the importance of maintaining accurate and transparent payroll records which are already required pursuant to other applicable employment laws. Employers with questions about compliance should consult with legal counsel to avoid potential enforcement actions.
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