The proposed legislation, General Assembly Raised Bill No. 7197, aims to enhance paycheck transparency for employees by mandating that employers provide detailed wage records with each payment. Effective October 1, 2025, employers will be required to furnish employees with a written or electronically accessible record that includes hours worked, gross earnings (with separate entries for straight time and overtime), itemized deductions, and net earnings. However, this requirement will not apply to employees exempt from time record-keeping and overtime payment under the Connecticut Minimum Wage Act or the Fair Labor Standards Act. Additionally, if records are provided electronically, employers must ensure secure access and confidentiality of personal information.

The bill also introduces several new requirements for employers, including the creation of a pay code guide that explains the codes used for various types of pay, which must be posted on the employer's website in multiple languages. Employers are required to update this guide whenever new pay codes are added and include a link to it on each record of hours provided to employees. Furthermore, upon hiring, employers must provide a detailed explanation of the relevant pay codes for the employee's position. These measures are designed to improve employee understanding of their pay and promote transparency in wage practices.

Statutes affected:
Raised Bill: 31-13a