When employees receive their paycheck, they expect more than just the dollar amount—they expect clarity about how that number came to be. Pay stubs, also known as wage statements, offer a detailed view of how earnings are calculated, including hours worked, deductions, and net pay. To help answer the question, “which of the following information is typically included on a pay stub?”, Nakase Law Firm Inc. emphasizes that understanding pay stub requirements is essential for both compliance and employee trust. In California, employers must follow specific rules laid out by the state’s Labor Code, and CACI 3900 standards provide courts with the instructions to assess whether employers meet their obligations.
Keeping pay stub information accurate is more than a good habit—it is legally required. According to California Business Lawyer & Corporate Lawyer Inc., courts frequently rely on CACI 3900 to instruct juries on proper wage statement requirements and employee rights during pay stub disputes. When employers miss key details or provide confusing records, they risk penalties and lawsuits. Employees, in turn, rely on these documents to make sure they’re being paid correctly.
Why Pay Stub Information Is Required
California Labor Code Section 226 is the foundation for what must appear on a pay stub. CACI 3900 builds on this by offering model instructions used in court cases. Together, they ensure that workers have access to clear, complete wage information. This framework is intended to reduce confusion, prevent exploitation, and help resolve wage disputes without costly court battles.
Employers who skip information or make mistakes, even by accident, can face serious consequences. Errors open the door to employee claims for damages, statutory penalties, and legal fees. A simple oversight could turn into a significant financial and legal issue.
Key Information That Must Be on Every Pay Stub
Pay stubs are required to include certain specific items that provide a complete breakdown of how pay is calculated. Here’s a closer look at what must appear:
Gross Wages Earned
The gross wages section shows an employee’s total earnings before any taxes or deductions come out. If an employee works at multiple pay rates, the stub must separate the earnings for each rate.
Clear presentation of this information helps avoid confusion about overtime, bonuses, and commissions.
Total Hours Worked
Hourly employees must have their total hours listed. This includes both regular hours and any overtime hours. If an employee works two different types of shifts at different rates, each should be listed separately.
For salaried employees who are exempt from overtime laws, hours worked might not need to be included unless it’s required by a particular agreement or company policy.
Piece-Rate Units Earned (If Applicable)
For employees who are paid by the piece rather than the hour, the pay stub must list the number of completed units and the applicable rate. This helps piece-rate workers verify that they were properly compensated for each task completed.
Simply putting a lump sum without an explanation does not meet legal standards.
Deductions
Deductions can include federal and state taxes, Social Security, Medicare, health insurance premiums, union dues, or wage garnishments. Each type of deduction must be listed separately.
Generalized deductions without specific details do not satisfy the law. Workers have the right to see exactly where their money is going.
Net Wages Earned
This is the bottom-line amount an employee actually takes home after all deductions are removed. It should be clearly labeled to avoid any misunderstanding.
Employees often look at this number first, but it’s important that they can easily trace how it was calculated.
Inclusive Dates of the Pay Period
The pay stub must identify the start and end dates for the pay period. This helps employees link their hours and earnings to specific dates worked.
For example, it might say “Pay Period: 03/16/2025 to 03/31/2025.” Missing or vague dates can lead to confusion and complaints.
Employee’s Name and Last Four Digits of Social Security Number (or Employee ID)
Identifying the employee correctly is required, but for privacy, only the last four digits of the Social Security Number should appear. Alternatively, a unique employee ID number can be used.
Listing a full Social Security Number is not allowed and could expose the employer to privacy violation claims.
Employer’s Name and Address
The pay stub must show the employer’s full legal name and a physical address. If the business operates under a different name (a DBA), that name should be included as well.
The address should be a real location, not just a mailing address or P.O. Box, so employees have a place to direct inquiries if needed.
Hourly Rates and Hours Worked at Each Rate
Employees working at multiple rates during a pay period must see a breakdown for each. For example, regular hours at $18 per hour and overtime at $27 per hour must be separated.
This breakdown allows employees to check if overtime was properly calculated and paid.
Sick Leave and Paid Time Off Balances
While not part of CACI 3900 requirements directly, California law requires employers to show available sick leave either on the pay stub or on a separate document provided at the same time.
Including paid time off (PTO) balances can be helpful and shows goodwill, although it is not always mandatory.
Good Practices Beyond Legal Requirements
Though the law sets a minimum standard, thoughtful employers often include extra details that help avoid confusion:
- Showing year-to-date (YTD) totals for earnings and deductions
- Listing bonuses, commissions, or special pay separately
- Providing a clear explanation for any deductions like garnishments
- Making electronic pay stubs available for easy access
Employers who take extra steps in documenting wage information often find fewer disputes and stronger employee loyalty.
What Happens When Pay Stub Rules Aren’t Followed
Ignoring or misunderstanding pay stub laws can cost employers a lot. If a pay stub fails to meet the requirements, penalties may include:
- $50 for the first violation
- $100 for each subsequent violation, up to $4,000 per employee
- Reimbursement of attorney’s fees and court costs
- Additional penalties under the Private Attorneys General Act (PAGA) for broader violations
When combined with other wage and hour claims, these cases can lead to very large settlements or judgments.
How to Fix Pay Stub Mistakes
If an employer finds an error, they should act quickly. The steps should include:
- Letting affected employees know right away
- Issuing a corrected pay stub
- Paying any additional amounts owed immediately
- Documenting the correction thoroughly
Prompt and honest corrections show respect for employees and can help reduce legal risks.
Final Thoughts
Pay stubs do much more than show an employee’s take-home pay. They provide a full, transparent account of how every paycheck is calculated. Following CACI 3900 standards and California Labor Code rules ensures that wage statements meet legal requirements and support fair workplace practices.
When employers focus on clear, detailed pay stubs, they help protect themselves from legal trouble and build a better relationship with their team. Workers, in turn, can feel confident that they are being paid correctly and fairly. In the long run, a few extra minutes spent double-checking pay stubs can save everyone from costly misunderstandings.
