Important change to California’s pay statement requirements
December 30, 2007
Up until now, California employers have been required to include an employee’s name and social security number on the pay statement, but that rule has been changed under California Labor Code section 226 effective January 1, 2008. Now, employers cannot include more than the last four digits of the employee’s social security number on the pay statement and may alternately substitute their employee identification number. All other items required on the pay statement under Section 226 remain the same. An employer who fails to comply with the new requirement of section 226 may be exposed to substantial liability, including statutory and civil penalties, damages and attorneys’ fees.