House Bill 106, the Paystub Protection Act, just recently went into effect April 9 and will require that employers provide detailed pay statements to employees on regular paydays. While employers may already be providing pay statements, there is a new level of detail required that may prompt changes for school paystubs and even require future changes in the state payroll system.
The act requires that you provide each employee with a written or electronic pay statement that includes the employee’s earnings and deductions for each pay period, on the employer’s regular paydays.
This pay statement must also include:
1. The employee’s name;
2. The employee’s address;
3. The employer’s name;
4. The total gross wages earned by the employee during the pay period;
5. The total net wages paid to the employee for the pay period;
6. A listing of the amount and purpose of each addition to or deduction from the wages paid to the employee during the pay period;
7. The date the employee was paid and the pay period covered by that payment; and
8. For an employee who is paid on an hourly basis, all of the following information:
a. The total number of hours the employee worked in that pay period;
b. The hourly wage rate at which the employee was paid; and
c. The employee’s hours worked in excess of 40 hours in one workweek.
The act gives a 10-day grace period if you fail to provide the pay statement on the employee’s payday. However, if you fail to provide the required paystub for more than 10 days after the employee requests their paystub, the employee may submit a report of the violation to the Ohio Director of Commerce. The Ohio Director of Commerce will investigate and may issue a written notice of violation to the district. Districts must then post the notice of violation for 10 days in a conspicuous place.
What does this mean for your district?
Districts should conduct a review of payroll processes to ensure that paystubs are consistently sent out on the district’s regular paydays, and that paystubs include the necessary details. If they do not, districts may want to review the requirements with your IT department for your billing software. Additionally, districts may need to make changes to how you toll and count employee leave. Contact an attorney at Ennis Britton if you have any questions or concerns about compliance with this act.
https://search-prod.lis.state.oh.us/api/v2/general_assembly_135/legislation/hb106/05_EN/pdf/