House Bill No. 7197, titled "An Act Requiring Paycheck Transparency," mandates that employers provide their employees with clear and accessible information regarding their pay. Specifically, the bill requires employers to furnish a written or electronically consented record of hours worked, gross earnings (with separate entries for straight time and overtime), itemized deductions, and net earnings with each wage payment. Additionally, it stipulates that if records are provided electronically, employers must ensure secure access and confidentiality of personal information. The bill also introduces new requirements for employers to create a guide detailing the pay codes used, which must be posted on their website in multiple languages and updated whenever new pay codes are added.

Furthermore, the bill mandates that employers include a link to this pay code guide on each record of hours provided to employees. Upon hiring, employers are required to give a detailed explanation of the relevant pay codes for the employee's position, including definitions for each code. The effective date for these provisions is set for October 1, 2025. The bill aims to enhance paycheck transparency and ensure that employees have a clear understanding of their earnings and deductions, thereby promoting fair labor practices.

Statutes affected:
Raised Bill: 31-13a
LAB Joint Favorable: 31-13a
File No. 525: 31-13a