Valiant Solutions’ Kelly Mortimer Discusses Pay Stub Compliance

Valiant Solutions Pay Stub Compliance

Kelly Mortimer is the Vice President, Product Management at Valiant Solutions. Valiant is a leading provider of cloud-based Human Capital Management Solutions, serving business leaders nationwide.

Kelly Mortimer Valiant Solutions Pay Stub Compliance
Kelly Mortimer, Valiant Solutions

Designed to meet the unique needs of large hourly workforces, Valiant offers a comprehensive suite of easy-to-use Human Capital Management products with a special focus in the Hospitality vertical space. Valiant’s compliance team supports the product through active legislative monitoring on all levels, participation through American Payroll Association Hospitality sub committee and various other National, Federal, State and local associations.

What areas does Valiant specialize in your restaurant and hospitality practice?

With the hospitality space being a low wage, high violation industry per the Department of Labor – indicating that it’s one of the most complicated workforces to manage – it is a perfect fit for Valiant to apply its expertise in servicing the complex hourly workforce.

Our solutions assist all types of operators in this space, ranging from the small, single location casual dining operation to the most prestigious establishments operating from a single location to those with multi-unit operations in multiple states.

How do Valiant and EGS work together to serve the restaurant and food service industry?

Valiant is a member of the NYC Hospitality Alliance and is very active in the hospitality community. With a specialized focus in this vertical, we have synergy with many other organizations in this space.

Please explain pay stub compliance. Effective date?

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The information required on pay stubs varies widely from state to state. However, the goal is common across the states, which is that the employee needs to be assured they are being paid the proper amount each period. They do this by reviewing their paystub and verifying it has the proper number of hours worked and the proper pay rates for those hours. It also itemizes other relevant items such as the cost of employer provided meals, uniform allowances, deductions and reported tips. Additional attributes may be required on the stub by state; for instance, in Oregon effective January 1st 2017, the Oregon Business Identification number is required to be included on the paystub. The paystub is the primary source that both the employee and the state agency will evaluate to validate the accurate payment of wages and reporting.

Improper or incomplete paystubs can result in heavy fines and legal fees and have been known to force business to cease operations. Valiant’s compliance team closely monitors updates to pay stub compliance to help keep our clients stay compliant.

What are some of the requirements unique or specific to NYS pay stub compliance laws?

New York requires more information than any other State, with the possible exception of California. Specifically, New York requires that the employee must be notified on the stub that the employer is taking a tip credit and the amount per hour of that credit. Additionally, any allowance included in the payment must be itemized, such as for employer provided meals and uniforms, as mentioned above. The following is a list of what must be displayed, if applicable: New York, Pay period dates, Employee name, Employer name, Address and phone number, Rate of pay and the basis for each (e.g. commission, salary), Gross wages, Itemized deductions, Credits taken (e.g. tip credit, meal allowance, uniforms), Net Wages, Number of regular hours with pay rate, and Number of overtime hours with pay rate.

Very few companies are compliant with NYS pay stub requirements. Is that the result of a lack of understanding or deliberate rejection of the law? Why?

Valiant helps our clients be compliant by providing a consultative approach and reviewing their business operations. Once the review is complete, if we find items that need to be tracked and are not, or items that are being tracked but not reported properly, we make recommendations to the client to close that gap and avoid penalties and litigation. This approach helps our clients understand and comply with the NYS stub requirements.

Are NYS pay stub requirements appropriate or overly demanding and unfair? What is the general opinion of the restaurant and food service industry regarding these laws?

Including additional information on a paystub that helps an employee understand what makes up their net pay and displays that they are being paid what they are entitled to is a fair practice. Providing such details can help eliminate questions in an employee’s mind, which might prevent the employee from filing a complaint with an agency or going to an attorney to begin a suit. This could save the client money and also valuable time. While I think most would agree with the foregoing, I can also understand the effort this takes to implement.

What must NYS do in order to increase compliance with pay stub requirements?

Offering additional materials or webinars to explain the requirements and why complying with them benefits both the employer and employee may be beneficial. Valiant is an active participant in the APA at the State, local and national levels where we assist in making recommendations for and participate in educational programs that explain current regulations, often in conjunction with agency representatives.

What’s the next step for a reader that would like to get more info on how Valiant can help a restaurant achieve compliance?

Visit the Valiant Website. Here you can find a wealth of useful information and ask to be contacted to schedule our free operational procedure review.