House Bill No. 5386, titled "An Act Requiring Paycheck Transparency," mandates that employers with 50 or more employees, including state and municipal entities, create and maintain a guide detailing the pay codes used for overtime and various pay differentials. This guide must be posted on the employer's website in English, Spanish, and other commonly spoken languages among employees. It should explain the different pay codes, such as those for shift differentials, hazard pay, and holiday pay, and include contact information for addressing employee disputes regarding pay calculations. Employers are required to update this guide whenever new pay codes are introduced and must provide a link to the guide on each employee's pay record and upon hiring.

The bill also modifies existing law by repealing Section 31-13a and substituting it with new provisions that enhance paycheck transparency. Specifically, it requires employers to furnish employees with a written or electronically consented record of hours worked, gross earnings, itemized deductions, and net earnings. The bill emphasizes the need for secure access to electronic records and confidentiality safeguards for personal information. The effective date for these changes is set for October 1, 2026.

Statutes affected:
Raised Bill: 31-13a
LAB Joint Favorable: 31-13a
File No. 199: 31-13a