Pay-Related Notices: Often Required Even for the Smallest Employers

Some states and local jurisdictions require employers to provide employees with notice of their payday, a notice of the employee’s pay rate at the time of hire or before their pay rate changes, and/or a notice containing specified wage and company information. In some jurisdictions, these obligations can apply even if you have only one employee. The following overview highlights selected pay-related notice requirements.

KEY POINTS

There is no one federal rule covering these pay-related notice requirements, so employers often need to look to state or local law.
Even very small employers may have these notice responsibilities.
Employers with multi-state operations or remote employees may face compliance challenges because these notice rules aren’t the same everywhere.
Covered employers should develop a process to comply with these requirements that can be applied consistently.
This article focuses on selected payday and pay-rate notice requirements and doesn’t cover pay-stub or wage-statement obligations.

Posted Notices

Some states require employers to post a notice in the workplace telling employees when they are paid and the time and place of payment.

Here are four examples of states that have an express requirement to post the regular payday and the time and place of payment:

California: All employers must post a notice that shows the day, time and location of payment. The notice must be posted conspicuously at the place of work, if possible. Otherwise, it must be posted where it can be seen as employees come or go to their places of work, or at the office or nearest agency for payment kept by the employer.
Colorado: All employers must post a notice detailing the regular paydays, time and place of payment, and any changes that may occur. The notice must be posted conspicuously at the place of work, if possible. Otherwise, it must be posted where it can be seen as employees come or go to their places of work, or at the office or nearest agency for payment kept by the employer.
Illinois: All employers must post a notice indicating the regular payday and the place and time for payment. The notice must be posted at each regular place of business in a position easily accessible to all employees.
Nevada: All employers must post a notice setting forth the regular paydays and the place of payment, and must give written notice at least seven days before changing a regular payday or place of payment. The poster must be displayed in at least two conspicuous places where it can be seen by the employees.

Time-of-Hire Notices

Several states require employers to give employees a written notice that includes their regular paydays and often their rate of pay, and sometimes even leave and other benefit information. In some jurisdictions, employers must provide an updated written notice when certain information changes.

For example, Alaska requires all employers to notify an employee in writing at the time of hiring of the day and place of payment, and the rate of pay, and of any change with respect to these items on the payday before the time of change. An employer may give this notice by posting a statement of the facts, and keeping it posted conspicuously at or near the place of work where the statement can be seen by each employee as the employee comes or goes to the place of work.

Here are six more examples.

California: At the time of hire, non-exempt employees must be provided with a written notice indicating their pay rates, paydays, overtime rates, and other specified information about wages, paid sick leave, and the employer. Employers must notify their employees in writing of any changes to the information set forth in the notice within seven calendar days, unless all changes are reflected on a timely wage statement furnished in accordance with state law.

Illinois: Employers must notify employees at the time of hire of their rate of pay and the time and place of payment. Whenever possible, that notice should be in writing and acknowledged by both parties. As mentioned above, Illinois also requires employers to post the regular paydays and the place and time of payment at each regular place of business.

Maryland: At the time of hire, employers must give written notice of the rate of pay, regular paydays and leave benefits. Notice must also be provided one pay period in advance of any change in a payday or a reduction in pay.

Minnesota: At the time of hire, all employers must provide each employee with a written notice with specified pay, leave, and company information and keep a signed copy of the notice on file. Employers are also required to provide employees in writing any changes to the information in the notice before the date the changes take effect.

New York: At the time of hire, employers must provide a written pay notice stating the employee’s rate(s) of pay, basis of pay, regular payday, any allowances claimed as part of the minimum wage, and specified employer information. For employees eligible for overtime, the notice must state the regular hourly rate and overtime rate. Employers must notify employees of changes in paydays before the change takes effect.

South Carolina: At the time of hire, employers with five or more employees must notify employees in writing of the normal hours and wages agreed upon, the time and place of payment, and the deductions that will be made from the wages, including payments to insurance programs. The employer may give written notification by posting these items conspicuously at or near the place of work. Any changes in the information must be made in writing at least seven calendar days before they become effective (except for pay increases).

Local Laws

Local laws may also have their own requirements. Here are two examples.

Baltimore, Maryland: Employers employing two or more workers in Baltimore must notify employees at the time of hire of their rate of pay and regular payday, and must notify employees of any changes in pay rates or payday at least one pay period before the change.
Minneapolis, Minnesota: Employees covered by the city ordinance—generally, those who perform at least 80 hours of work in Minneapolis in a benefit year for the same employer—must be provided with a written prehire notice showing pay rates, paydays, overtime rates, and other specified information about wages, leave, and the employer. The notice must be signed by the employee and retained by the employer. Employers must provide a new written notice if any of the factual information changes. Additionally, employers must post the city’s labor poster.

Conclusion

Check state and local laws to determine whether you are covered by one or more of these requirements. Covered employers should also verify any required form, language, signature, or record-retention rules, because these details vary by jurisdiction.

Even in the absence of a state or local requirement, it is a best practice to notify employees of their payday and pay rate in writing and provide an updated notice before any changes are made.

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