Employees in California have to receive a pay stub from their employer each time that wages are paid out. The pay stub must contain information about the employee, employer, the applicable rate of pay and other information.
If a pay stub lacks information, the employer does not provide one or if the information on it is incorrect, the employer is in violation of Californian labor laws.
A wage statement must contain the employee’s name, the last four digits of his social security number, the name, and address of the employer and a summary of the total hours worked by the employee.
It must show the employee’s gross- and net wages, the inclusive dates of the period for which the employee is being paid and all deductions.
The aim is that workers must be provided with enough information so that they can verify that they are being properly paid.
The California Labor Code has statutory penalties for inaccurate pay stubs. It starts at $50 for the first violation and then rises to $100 for each subsequent violation. The penalties can add up quickly. Penalties are further assessed per employee – so if an employer issues faulty pay stubs to all of his workers, his exposure to wage statement penalties is huge.
Some wage statement faults can be corrected by the employer without him having to pay fines.
If an error was made in the inclusive dates for the period for which the employee is paid and the name and address of the employer, employers have a 33-day window in which they can fix violations and avoid penalties.