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What Are California's Wage Statement Requirements?

California Labor Code § 226 requires employers to provide an itemized wage statement (pay stub) with each paycheck showing 9 specific pieces of information: employee name and ID, pay period dates, hours worked, pay rates, gross and net wages, deductions, employer name and address, and all applicable hourly rates and hours worked at each rate. If your employer fails to provide accurate wage statements, you can recover $50 for the first violation, $100 for each subsequent violation, up to $4,000 maximum, plus any actual damages from the inaccurate information.

Why Accurate Wage Statements Matter

Your pay stub is your proof of wages earned, hours worked, and deductions taken. Without accurate wage statements, you cannot verify you’re being paid correctly for overtime, that deductions are proper, or that your employer is withholding the right amount for taxes. Accurate pay stubs help you identify wage theft, calculate unpaid wages, and prove violations. When employers provide inaccurate or incomplete wage statements, they’re making it harder for you to enforce your rights.

The 9 Required Items on California Pay Stubs

Labor Code § 226 specifies exactly what must appear on every wage statement. Missing or inaccurate information violates your rights.

1. Gross Wages Earned

Your pay stub must show your total gross wages for the pay period before any deductions. This includes:

  • Regular hourly wages
  • Overtime wages
  • Double time wages
  • Bonuses
  • Commissions
  • Any other compensation earned

Gross wages must be clearly itemized so you can verify the total matches your hours worked and rates of pay.

2. Total Hours Worked

For non-exempt hourly employees, your pay stub must show the total number of hours you worked during the pay period.

This requirement helps you verify:

  • All your hours were counted
  • Overtime hours are correctly identified
  • Your pay matches your hours

Exempt employees and some salaried non-exempt employees may not need hours listed if they’re compensated on a salary basis.

3. Number of Piece-Rate Units Earned and Applicable Piece Rate

If you’re paid on a piece-rate basis (per item produced, per task completed), your pay stub must show:

  • The number of units you completed
  • The rate paid per unit

This allows you to verify your total compensation matches your production.

4. All Deductions

Your pay stub must itemize every deduction from your gross wages, including:

  • Federal income tax
  • State income tax
  • Social Security (FICA)
  • Medicare
  • State Disability Insurance (SDI)
  • Health insurance premiums
  • Retirement contributions (401k, pension)
  • Union dues
  • Wage garnishments
  • Any other deductions

Each deduction must be listed separately, not lumped together. You must be able to see exactly what was taken from your paycheck and why.

5. Net Wages Earned

Your pay stub must show your net pay (take-home pay) after all deductions. This is the amount you actually receive.

Net wages = Gross wages – Total deductions

6. Inclusive Dates of the Pay Period

Your pay stub must clearly show the start date and end date of the pay period covered. For example: “Pay Period: 10/01/2024 – 10/15/2024”

This allows you to match the wages to the specific time period you worked.

7. Employee’s Name and Last Four Digits of SSN or Employee ID

Your pay stub must identify you by:

  • Your full name or last name and first initial
  • The last four digits of your Social Security number, OR
  • An employee identification number

Your employer cannot show your full Social Security number on the wage statement (privacy protection).

8. Employer’s Name and Address

Your pay stub must clearly identify your employer’s legal name and the address of the main office or the location where you work.

This information is essential if you need to file a wage claim or lawsuit. You must know the legal entity that employs you.

9. All Applicable Hourly Rates and Total Hours at Each Rate

For non-exempt employees, your pay stub must separately list:

  • Regular hourly rate and hours worked at that rate
  • Overtime rate (1.5x) and hours worked at that rate
  • Double time rate (2x) and hours worked at that rate
  • Any other rates (shift differential, etc.) and hours at each rate

Example:

Regular hours: 40 hours @ $20.00/hr = $800.00
Overtime hours: 8 hours @ $30.00/hr = $240.00
Double time hours: 2 hours @ $40.00/hr = $80.00

This breakdown allows you to verify that your overtime and double time are calculated and paid correctly.

Additional Wage Statement Requirements

Beyond the 9 core items, California law has additional requirements:

Timely Delivery

Your employer must provide your wage statement at the time wages are paid. If you receive direct deposit, your employer must provide the wage statement on the pay date (electronically or by mail).

Format

Wage statements can be provided:

  • On paper (detachable stub with paycheck)
  • Electronically (email, online portal)

If provided electronically, you must be able to print the statement easily and your employer must maintain records accessible to you.

Record Retention

Your employer must keep copies of wage statements and payroll records for at least 3 years. You have the right to request and inspect these records.

Employee Access to Records

Under Labor Code § 226(b), you can request copies of your wage statements and payroll records. Your employer must provide them within 21 days or face penalties.

Wage Statement Penalties (Labor Code § 226(e))

When your employer fails to provide accurate, complete wage statements, you’re entitled to statutory penalties.

Penalty Amounts

  • First violation: $50
  • Each subsequent violation: $100
  • Maximum total: $4,000

“Violation” means each pay period with an inaccurate or missing wage statement. If you received inaccurate pay stubs for 50 pay periods, that’s 50 violations.

Calculation example:

  • First inaccurate pay stub: $50
  • Next 39 inaccurate pay stubs: 39 × $100 = $3,900
  • Total penalties: $50 + $3,900 = $3,950 (approaching the $4,000 maximum)

The penalties max out at $4,000 regardless of how many pay periods are affected.

Additional Damages

Beyond the statutory penalties, you can recover:

  • Actual damages from the inaccurate wage statement (if you suffered financial harm)
  • Unpaid wages if the inaccurate statement reflected unpaid wages
  • Attorney’s fees and costs if you hire a lawyer and prevail
  • Interest on any unpaid wages

Actual damages might include bank fees from a bounced check, late payment fees, or other costs directly caused by the wage statement violation.

What Counts as “Inaccurate”

Labor Code § 226(e) distinguishes between knowing and intentional violations and technical mistakes:

Knowing and intentional failures: Missing required information, deliberately incorrect information, or patterns of violations.

Inadvertent technical errors: Minor mistakes that don’t cause harm. These may not trigger penalties if the employer can prove the error was unintentional and promptly corrected.

However, most wage statement violations are actionable. Repeated “errors” are presumed knowing and intentional.

Common Wage Statement Violations

Violation 1: Missing Hourly Rate Breakdown

Your employer shows total hours and total pay but doesn’t break down regular hours vs. overtime hours or regular rate vs. overtime rate.

Example pay stub:

Total hours: 50
Total pay: $1,100

This violates § 226 because you cannot verify whether overtime was properly calculated. The pay stub must show:

Regular hours: 40 @ $20/hr = $800
Overtime hours: 10 @ $30/hr = $300

Violation 2: Missing or Vague Deductions

Your employer shows a lump sum deduction without itemizing what it covers.

Example:

Gross pay: $2,000
Deductions: $600
Net pay: $1,400

This violates § 226 because deductions must be itemized:

Federal tax: $250
State tax: $100
FICA: $153
Medicare: $36
Health insurance: $61
Total deductions: $600

Violation 3: No Hours Listed for Hourly Employee

Your employer pays you hourly but doesn’t show total hours on the pay stub, only the total amount.

This violates § 226 because hourly non-exempt employees must have hours listed so they can verify payment matches hours worked.

Violation 4: Wrong Pay Period Dates

Your pay stub shows incorrect dates for the pay period, making it impossible to match wages to the time period worked.

Example: You worked October 1-15, but the pay stub says “Pay period: September 15-30”

This violates § 226 and prevents you from verifying the wages match the correct time period.

Violation 5: Missing Employer Information

Your pay stub doesn’t show your employer’s legal name or address. It might only show the payroll company’s name.

This violates § 226 and makes it difficult to identify the proper party if you need to file a wage claim.

Violation 6: Electronic Statements Not Accessible

Your employer provides electronic wage statements but the system frequently crashes, requires special software, or prevents you from printing.

Electronic statements must be reasonably accessible. If they’re not, this violates the wage statement requirements.

Real-World Examples of Wage Statement Violations

Example 1: Restaurant Server Missing Overtime Breakdown

Maria works as a server. She regularly works 45-50 hours per week. Her pay stubs show:

Total hours: 48
Total pay: $950

Her pay stub doesn’t break down regular vs. overtime hours or rates. She cannot verify if her overtime was calculated correctly.

Violations over 1 year (26 pay periods):

  • First pay stub: $50
  • Next 25 pay stubs: 25 × $100 = $2,500
  • Total penalties: $2,550

Upon closer inspection, Maria discovers her employer paid all hours at the regular rate without time-and-a-half for overtime. She’s also owed significant unpaid overtime in addition to the wage statement penalties.

Example 2: Construction Worker with Unlawful Deductions

David works construction earning $30/hour. His employer deducts $50 per week for “tool rental” without itemizing this on his pay stub. The pay stub shows:

Gross wages: $1,200
Deductions: $350
Net wages: $850

The deductions section doesn’t break down the $350, violating § 226. Additionally, the “tool rental” deduction is likely illegal under California law (employers must provide necessary tools).

Violations over 6 months (13 pay periods):

  • First pay stub: $50
  • Next 12 pay stubs: 12 × $100 = $1,200
  • Total penalties: $1,250

David is also entitled to reimbursement of the $650 in tool rental fees ($50 × 13 weeks) plus interest.

Example 3: Misclassified Office Worker

Keisha is misclassified as exempt but is actually non-exempt. Her pay stub shows only:

Salary: $2,500
Net pay: $1,900

Because she’s actually non-exempt, her pay stub should show:

  • Hours worked
  • Regular and overtime rates
  • Hours at each rate

The missing information violates § 226.

Violations over 2 years (52 pay periods):

  • First pay stub: $50
  • Next 39 pay stubs to reach maximum: 39 × $100 = $3,900
  • Total penalties: $3,950 (approaching $4,000 cap)

Keisha is also owed unpaid overtime for the entire 2-year period, which could be $30,000+ depending on her hours.

What to Do If Your Wage Statements Are Inaccurate

Step 1: Compare Multiple Pay Stubs

Review several of your recent pay stubs. Check whether they include all 9 required items:

  • Gross wages
  • Total hours worked
  • Piece-rate units and rates (if applicable)
  • All deductions itemized
  • Net wages
  • Pay period dates
  • Your name and ID number
  • Employer name and address
  • All applicable rates and hours at each rate

Make a list of what’s missing or incorrect on each pay stub.

Step 2: Request Corrected Wage Statements

Send a written request (email is best for documentation) to your employer’s HR or payroll department:

  • Identify the pay periods with inaccurate statements
  • List what’s missing or incorrect
  • Request corrected wage statements be provided
  • Set a reasonable deadline (7-14 days)
  • State that you’re aware of Labor Code § 226 requirements

Keep copies of your request and any responses.

Step 3: Request Payroll Records

Under Labor Code § 226(b), you have the right to inspect and receive copies of your payroll records. If your pay stubs are incomplete, request:

  • Detailed time records showing all hours worked
  • Calculations showing how your pay was computed
  • Records of all deductions

Your employer must provide these within 21 days or face penalties of $750 per employee.

Step 4: Document the Impact

If the inaccurate wage statements caused you actual damages, document them:

  • Bank fees from bounced checks
  • Late fees on bills you couldn’t pay
  • Time spent trying to get accurate information
  • Difficulty determining if you were paid correctly

These actual damages are recoverable in addition to statutory penalties.

Step 5: Calculate Penalties

Count how many pay periods had inaccurate wage statements. Calculate the penalties:

  • First violation: $50
  • Subsequent violations: $100 each
  • Total (maximum $4,000)

Know this number before filing a claim or contacting an attorney.

Step 6: File a Wage Claim or Lawsuit

You have two options:

File with the Labor Commissioner (DLSE): Free process, no attorney required. File a claim for wage statement penalties plus any unpaid wages. Visit dir.ca.gov.

Hire an employment attorney: Attorneys can file lawsuits for larger recoveries including wage statement penalties, unpaid wages, and attorney’s fees. Many work on contingency.

Choose the Labor Commissioner route for straightforward cases, or an attorney for complex situations or when significant unpaid wages are also involved.

Step 7: Act Within the Deadline

You have one year from the date of each violation to file a claim for wage statement penalties under § 226(e).

However, you have three years to file claims for underlying unpaid wages that may be related to the inaccurate statements.

Don’t wait too long. File as soon as you identify the violations.

Frequently Asked Questions

Can my employer provide wage statements electronically instead of on paper?

Yes. Electronic wage statements are permitted if you can easily access, view, and print them. Your employer cannot require you to pay a fee to access your wage statements. If the electronic system doesn’t work properly or requires special software you don’t have, this may violate the law.

What if my employer fixes the inaccurate wage statement after I complain?

You’re still entitled to penalties for the original violation. Your employer cannot avoid penalties by correcting the error after you raise the issue. However, prompt correction shows good faith and may reduce the likelihood of future violations.

Do wage statement penalties apply if my employer paid me correctly but just had errors on the pay stub?

Yes. Wage statement violations are separate from unpaid wage violations. Even if you were paid the correct amount, inaccurate or incomplete wage statements violate § 226 and trigger penalties. The law recognizes that accurate statements are important regardless of whether the underlying pay was correct.

Can I get penalties for old pay stubs from several years ago?

You have one year from each violation to file a wage statement penalty claim. Pay stubs older than one year are generally outside the statute of limitations for penalties (though you may still have claims for underlying unpaid wages going back three years).

What if I’m paid by direct deposit and never receive a pay stub?

Your employer must still provide a wage statement with direct deposit. They can deliver it electronically or by mail on the pay date. If they don’t provide any wage statement, that’s a violation for each pay period.

Related Topics

Demand Accurate Wage Statements From Your Employer

Accurate pay stubs aren’t a courtesy. They’re a legal requirement under California Labor Code § 226. If your employer provides incomplete or inaccurate wage statements, you’re entitled to penalties plus any actual damages.

Review your pay stubs carefully. Check for the 9 required items. If information is missing or wrong, document the violations and file a claim. Over months or years of inaccurate pay stubs, you could be entitled to thousands of dollars in penalties, plus any unpaid wages the inaccurate statements concealed.

Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. If you have questions about your specific situation, consult with a qualified California employment attorney who can evaluate your case and provide personalized guidance.

Source: California Department of Industrial Relations (DIR), Division of Labor Standards Enforcement (DLSE), California Labor Code § 226, § 226(b)