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02/12/2025

Ohio to Soon Require Pay Stub Transparency

Source: Fisher Phillips, February 4, 2025 

Pay stub transparency – the practice of providing all the details about an employee's earnings and deductions on their pay stub – is becoming standard across the United States, and Ohio just became the latest state to impose such obligations on employers. The Pay Stub Protection Act, which takes effect April 8, will require employers to provide employees with an itemized earnings statement that lists wages, deductions, additions, and much more relevant information. What do you need to know about this new law, and how should you prepare for the effective date?

The Law in a Nutshell

Once April 8 rolls around, you will need to ensure the following information is contained on each and every earnings statement you provide your workers:

• The name and address of both employee and employer;
• Total gross wages and total net wages;
• A breakdown of additions and deductions from wages, with a brief explanation of each;
• For hourly employees, the total hours worked, hourly wage rate, and any overtime hours included in the calculation; and
• The pay date and the pay period it covers.

Employers are free to deliver this information either on paper or in electronic form.

What Happens if Employers Don’t Comply?

Unlike in other states, like California and New York, where violations can lead to financial penalties or private legal action, Ohio employees do not have an independent cause of action against their employer for failing to provide the above information on the employee’s pay stub. Nor are there fines or monetary penalties for an employer’s non-compliance. Instead, Ohio lawmakers created a process to promote accountability and transparency, as follows:

• If an employee doesn’t receive the required information on their pay stub, the employee can submit a written request to the employer.
• The employer then has 10 days to provide the required information.
• Should the employer fail to supply the statement within 10 days, the employee can report the violation to the Ohio Director of Commerce.
• If the Director of Commerce determines that a violation occurred, it will issue a written notice of the violation that the employer must post at the workplace for 10 days.

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