Labor Code section 226 sets forth numerous requirements for itemized earnings statements. In particular, the statement or paycheck stub must include the following information:

• Gross wages earned;
• Total hours worked (not required for salaried exempt employees);
• The number of piece-rate units earned and any applicable piece rate, if the employee is paid on a piece rate basis;
• All deductions (all deductions made on written orders of the employee may be aggregated and shown as one item);
• Net wages earned;
• The inclusive dates of the period for which the employee is paid;
• The name of the employee and the last four digits of his or her social security number or an employee identification number other than a social security number;
• The name and address of the legal entity that is the employer; and
• All applicable hourly rates in effect during the pay period, and the corresponding number of hours worked at each hourly rate by the employee—this would include all overtime hours and rates, if any.

Many employers cut corners or otherwise make simple mistakes. They do not include the proper address or name of the employer, they leave off the hours worked or identification number for the employee, etc. These employers generally feel that as long as the employee is paid the correct amount, there shouldn’t be a problem. No harm, no foul, right? Wrong. The information required by Labor Code section 226 is important. Why is it important? Because the law was changed on January 1, 2013, to provide for damages for certain paycheck violations even where no actual injury occurs. Specifically, Labor Code section 226 was amended to deem an injury and thereby entitle an employee to a statutory penalty for a failure to provide the required information. The penalty is $50 for the first pay period violation, and $100 each subsequent pay period violation up to an aggregate penalty of $4000 per employee. In addition, attorneys’ fees and costs will be awarded to the prevailing employee.