INTRODUCTION TO WAGE NOTICE LAWS:

When changing an employee’s compensation package, it is best practice (and often a legal requirement) to provide advance notice to an employee of how his compensation will change.  This resource is intended to assist employers in understanding their obligations to employees with respect to that advance notice. Below you will find frequently asked questions, a state-by-state chart summarizing applicable notice requirements in several states, and links to sample notices for the noted states.  Providing clear, timely notice of compensation changes is often a legal requirement.  Even where not legally required, wage notices serve to maintain records for protection in the future.

Please note that this material is current as of July 2026, is offered for general informational purposes only, and does not constitute legal advice; organizations should consult qualified legal counsel regarding any specific employment decision, including when operating in states other than those in the chart below.    

FAQs

1. What is a wage notice?

a. In many states, when you hire an employee or change an employee’s rate of pay, you are required by law to provide the employee with a notice informing him of the change.  

2. Can I just have a conversation with the employee?

a. No. In many states, there is a legal requirement that the notice be in writing.  Additionally, it is almost always best practice to have this in writing in case a dispute arises down the road.

3. Does this resource apply to contractors, too?

a. No. This resource only discusses obligations to employees.  Some states may have separate rules that apply to contractors, so it will be best to check with legal counsel on any questions related to change of pay rates that arise with respect to contractors.

4. When must I give written notice of a pay-rate or wage change?

a. It depends.  Some states require notice within specific timeframes, while others require no notice at all so long as the change in pay is lawful.  It is generally best practice to notify the employee in writing prior to the change taking effect—both for legal purposes and to maintain a positive relationship with the employee—but for specific rules from different states, see the chart and forms below and consult with your organization’s attorney.

5. Does the requirement apply only to pay decreases or also to increases and other changes?

a. It depends on the state.  Generally speaking, legal obligations to notify an employee will apply to all of these changes, though.  

6. How far in advance must I notify the employee?

a. This varies by state, so see the chart below for specifics.  As a best practice, more notice is better.

7. What information must the notice contain?

a. Different states have different requirements.  For the states covered below which do require a notice, draft forms that would include the required information are attached for guidance.

8. Does the employee have to sign the form?

a. Some states require a written acknowledgement while others do not.  Even if not required, having the employee sign or at least acknowledge receipt in writing is best practice to demonstrate that notice was given.

9. Do I need to keep a copy of the notice provided to the employee?

a. Yes.  Retaining the notice is best practice to ensure you have good records as protection in case the change is later challenged or there is confusion.  Some states may have recordkeeping requirements, so please consult with legal counsel to confirm compliance in your particular state.

10. What if our organization operates in a state not listed below?

a. We have included a sample form below for jurisdictions that require (or recommend) written advance notice. In states with no explicit requirement, providing clear written notice still helps avoid disputes and documents that the employee was informed before working at the new rate. If the state where your organization operates is not included below, please consult with legal counsel on local requirements to ensure compliance.  The sample form below may still serve as a useful starting point.  Customize or supplement the form to match local rules; do not assume one template covers every jurisdiction.

11. What are the risks if I change pay without proper notice?

a. Possible consequences include wage claims, penalties, interest, liquidated damages, agency investigations, or private lawsuits, depending on the state. Improper notice can also complicate arguments that the employee agreed to the new rate. Using the form correctly and on time substantially reduces these risks.

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