​Ohio’s New Pay Stub Protection Act: What it Means for Employers

Come April 9, 2025, a new Ohio law will change how employers handle payroll documentation. The Pay Stub Protection Act (PSPA), signed into law as House Bill 106, is designed to increase wage transparency and ensure employees have a clear record of their earnings. If you run a business or work in payroll, this is a law you’ll want to pay close attention to.

Why Was the Pay Stub Protection Act Created?

Historically, Ohio was one of the few states that did not require employers to provide pay stubs. This lack of documentation often left employees in the dark about their wages, deductions, and benefits. Without a written or electronic record, workers faced challenges resolving paycheck discrepancies, confirming tax withholdings, and proving income for purposes such as loan or rental applications.

Recognizing these issues, state lawmakers introduced the PSPA to establish a standard that benefits both employees and employers. As Representative Dontavius L. Jarrells, a co-sponsor of the bill, explained, "This law ensures that every hardworking Ohioan has the documentation they need to verify their pay and benefits, preventing unnecessary disputes and confusion."

Key Requirements for Employers

Under the new law, all Ohio employers, regardless of size, must provide detailed pay statements to employees for each pay period. Pay stubs can be delivered in either paper or electronic format and must include the following details:

For All Employees

• Employee Information: Full name and address
• Employer Information: Company name
• Wage Details: Total gross wages earned, and total net wages paid
• Deductions and Additions: A breakdown of all withholdings (e.g., taxes, health insurance, retirement contributions) and additional earnings (e.g., bonuses, commissions)
• Payment Information: Pay date and the specific period covered

For Hourly Employees (Additional Requirements)

• Total Hours Worked: Clear documentation of regular and overtime hours
• Hourly Rate: Pay rate per hour
• Overtime Details: Any hours worked beyond 40 in a week and the corresponding overtime pay rate

These requirements ensure employees fully understand their earnings, helping to prevent payroll disputes and wage theft claims.

What Happens If an Employer Doesn’t Comply?

The PSPA comes with a straightforward enforcement mechanism. If an employee does not receive a pay stub, they can submit a written request to their employer. The employer then has 10 days to provide the requested pay statement. If the employer fails to comply, the employee can report the violation to the Ohio Department of Commerce, which will investigate the matter. If a violation is confirmed, the employer must publicly post a written notice of non-compliance at the workplace for 10 days.

Notably, the law does not create a private right of action—meaning employees cannot sue their employers for non-compliance. Instead, enforcement remains within the administrative realm, reducing litigation risks for businesses while ensuring accountability.

How Will This Impact Employers?

For many employers, this law will not significantly change existing practices. Most businesses already provide detailed pay stubs, particularly those using payroll software or third-party services like ADP or Paychex. However, some smaller businesses, particularly those that rely on cash payments or informal payroll systems, may need to make adjustments.

Key Steps for Employers to Prepare

1. Review Payroll Practices: Ensure your payroll system includes all the required details.
2. Ensure Accessibility: If using electronic pay stubs, confirm employees can access and print their records.
3. Train HR and Payroll Staff: Ensure your payroll department understands the new requirements and establish procedures for handling pay stub requests.
4. Update Company Policies: Revise your employee handbook or policies to reflect the new law and inform workers of their right to receive a pay stub.

The Bigger Picture: Why This Law Matters

Beyond legal compliance, the PSPA is a step toward fostering a more transparent and fairer workplace. Pay stubs serve as essential financial documentation for employees—they’re necessary for tax filing, income verification, and detecting payroll errors that might otherwise go unnoticed.

For employers, providing pay stubs can prevent wage disputes and foster trust with employees. While some may see this as just another regulatory hurdle, it is ultimately a best practice that should already be in place. The law simply ensures that every Ohio worker, from restaurant staff to corporate employees, receive the pay documentation they deserve.

Final Thoughts

With the April 8, 2025 deadline approaching, now is the time for employers to review their payroll systems and make any necessary adjustments. Compliance is relatively straightforward, and getting ahead of the curve will prevent headaches down the road.

For employees, this law is a win—ensuring they have a written record of their wages and deductions. For employers, it’s an opportunity to build trust with their workforce by demonstrating transparency and accountability.

Ohio’s Pay Stub Protection Act isn’t just a new law—it’s a step toward a more equitable workplace.

If you have any concerns about the impact this may have on your, please reach out to your contact at Mansour Gavin or one of Mansour Gavin’s Labor and Employment attorneys.