This note covers the main wage-and-hour questions for Utah employers and employees: the minimum wage, overtime, breaks, final pay, late-payment penalties, payday timing, worker classification, tipped wages, and enforcement. Each answer is tied to the Utah statute or rule that governs it. Where Utah has no rule of its own on a topic, the note says so and names the federal law that applies instead.
What is the minimum wage?
Utah's minimum wage is $7.25 an hour, set by a Labor Commission rule rather than a dollar figure in the statute, and the rule requires employers to pay that rate for all hours employed effective July 24, 2009 .
The Utah Minimum Wage Act lets the Commission set the rate, but it caps any rate the Commission sets at the federal minimum wage under the Fair Labor Standards Act of 1938 . Utah's rate therefore cannot go above the federal floor.
The federal Fair Labor Standards Act sets the same $7.25 hourly floor for covered employees . Utah's own minimum wage does not apply to an employee who is entitled to a minimum wage under that federal Act, and the exemption list also reaches outside salespeople and members of the employer's immediate family . An employee covered by the federal minimum wage therefore looks to federal law for the $7.25 floor.
Local governments cannot go above the federal floor either. A city, town, or county may not set or require a minimum wage higher than the federal minimum wage .
Minors are a narrow exception. Under the same rule, a minor employee must be paid at least $4.25 an hour for the first 90 days with an employer. After that, the minor must receive the regular minimum wage set in the rule .
Utah's Minimum Wage Act also permits an individual with a disability to be paid less than the minimum wage when that individual's earnings or productive capacity is impaired by age, physical or mental deficiency, or injury, as long as the wage is related to the individual's productivity . Utah's Minimum Wage Act also allows the Labor Commission to set a lesser minimum wage for learners that applies for no more than the first 160 hours of employment .
Sources for this answer
Utah employers not exempted by Section 34-40-104 must pay a minimum hourly wage of $7.25 for all hours worked, effective July 24, 2009.
All employers employing workers in the state of Utah, except those exempted by Section 34-40-104, shall pay the established minimum hourly wages of $5.85 an hour for all hours employed effective September 8, 2007; $6.55 an hour for all hours employed effective July 24, 2008; and $7.25 an hour for all hours employed effective July 24, 2009.
See Utah Admin. Code R610-1-3(A)
The minimum wage the Labor Commission sets may not exceed the federal minimum wage under the Fair Labor Standards Act.
The minimum wage, as established by the commission, may not exceed the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., the Fair Labor Standards Act of 1938, as amended, in effect at the time of implementation of this section.
See Utah Code § 34-40-103(2)(b)
The federal Fair Labor Standards Act requires covered employers to pay covered employees at least $7.25 an hour.
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: (1) except as otherwise provided in this section, not less than- (A) $5.85 an hour, beginning on the 60th day after May 25, 2007; (B) $6.55 an hour, beginning 12 months after that 60th day; and (C) $7.25 an hour, beginning 24 months after that 60th day;
See 29 U.S.C. § 206(a)(1)
Utah Code 34-40-104(1) states that the Utah minimum wage does not apply to employees entitled to the federal minimum wage, outside salespersons, or members of the employer's immediate family, among other listed exemptions.
The minimum wage established in this chapter does not apply to: (a) an employee who is entitled to a minimum wage as provided in the Fair Labor Standards Act of 1938, 29 U.S.C. Sec. 201 et seq.; (b) an outside sales person; (c) an employee who is a member of the employer's immediate family; (d) companionship service for an individual who, because of age or infirmity, is unable to care for the individual's self;
See Utah Code § 34-40-104(1)
A Utah city, town, or county may not establish or require a minimum wage above the federal minimum wage.
A city, town, or county may not establish, mandate, or require a minimum wage that exceeds the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
See Utah Code § 34-40-106(1)
A minor employee must be paid at least $4.25 per hour for the first 90 days with an employer and the regular rule minimum wage after that.
As per Sections 34-23-301 and 34-40-103, effective July 23, 2007, a minor employee shall be paid at least $4.25 per hour for the first 90 days of employment with an employer; and thereafter, minimum wage established in subsection A of this rule.
See Utah Admin. Code R610-1-3(B)
An individual with a disability whose earnings or productive capacity is impaired may be paid below the Utah minimum wage if the wage is related to the individual's productivity.
An individual with a disability whose earnings or productive capacities are impaired by age, physical or mental deficiency, or injury may be employed at wages that are lower than the minimum wage, provided the wage is related to the individual's productivity.
See Utah Code § 34-40-104(2)(a)
The Labor Commission may set a lesser minimum wage for learners for no more than the first 160 hours of employment.
The commission may establish or set a lesser minimum wage for learners not to exceed the first 160 hours of employment.
See Utah Code § 34-40-104(3)
When is overtime owed?
Overtime for Utah employees covered by the federal Fair Labor Standards Act is owed under that federal Act, which requires a covered employee to be paid at least one and one-half times the regular rate for every hour over forty in a workweek .
Under the general federal rule in 29 U.S.C. § 207(a)(1), overtime is measured by the workweek, so a long single day does not by itself trigger overtime unless the employee's hours for the week go over forty . Section 207 also makes exceptions to the general workweek rule. The U.S. wage and hour practice guide covers the federal weekly overtime baseline and how state rules differ from it.
Sources for this answer
Under the federal Fair Labor Standards Act, a covered employer must pay at least one and one-half times the regular rate for hours worked over forty in a workweek.
Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.
See 29 U.S.C. § 207(a)(1)
Are breaks required?
The Utah Labor Commission's rule on the employment of minors requires a meal period and paid rest periods for minor employees, and the rule's meal and rest provisions are written for minor employees .
For minor employees:
- Meal period. The employer must give the chance to take a meal period of at least 30 minutes. It must start no later than five hours after the minor's workday begins .
- Paid meal period when not relieved. If the minor cannot be fully relieved of all duties and allowed to leave the work station or area, the meal period must be paid as time worked .
- Rest periods. A minor employee must receive a paid rest period of at least 10 minutes for each four hours worked, or part of four hours. No minor may be required to work more than three hours in a row without a 10-minute rest period .
In unusual situations where those specific meal and rest provisions cannot be met, the Division may decide whether the rule's general intent of reasonable safeguards for a minor's health, safety, and education has been met .
Sources for this answer
Employers must allow a minor employee the opportunity for a meal period of at least 30 minutes, starting no later than five hours into the minor's workday.
Every employer must allow the opportunity for a meal period of not less than 30 minutes and not later than five hours after the beginning of a minor employee's workday.
See Utah Admin. Code R610-2-3(A)
A minor employee's meal period must be paid as time worked if the minor is not completely relieved of all duties and allowed to leave the work station or area.
If, during the meal period, the employee cannot be completely relieved of all duties and permitted to leave the work station or area, the meal period must be paid as time worked.
See Utah Admin. Code R610-2-3(A)
Each minor employee must receive a paid rest period of at least 10 minutes for each four hours or part of four hours worked, and may not be required to work more than three consecutive hours without one.
At least a 10 minute paid rest period for each four hours, or fraction thereof, shall be provided for each minor employee; however, no minor employee shall be required to work over three consecutive hours without a 10 minute rest period.
See Utah Admin. Code R610-2-3(B)
Utah Admin. Code R610-2-3(C) lets the Division decide, in unusual situations where the minor meal and rest provisions cannot be met, whether the rule's general intent of reasonable safeguards has been met.
In those unusual situations where the specific provisions of subsections A. or B. cannot be met, the Division may decide whether the general intent of the rules has been met to ensure attainment of reasonable safeguards for a minor's health, safety, and education.
See Utah Admin. Code R610-2-3(C)
When is final pay due?
A Utah employer that separates an employee from its payroll must pay the unpaid wages within 24 hours of the separation, while an employee without a written contract for a definite period who resigns is owed final wages on the next regular payday .
The employer ends the employment. The unpaid wages become due immediately, and the 24-hour payment is made at the specified place of payment . The employer meets the 24-hour deadline if it does any of the following :
- mails the wages in an envelope postmarked no more than one day after the separation;
- starts a direct deposit within 24 hours; or
- hands the wages to the employee within 24 hours.
The employee resigns. An employee who has no written contract for a definite period and who resigns is owed unpaid wages on the next regular payday. Any deposit the employer holds that properly belongs to the resigned employee for the performance of the job is also due and payable on that next regular payday .
Continuing-wage penalty. The penalty starts only after the employee makes a written demand for payment. If the employer does not pay the wages due within 24 hours of that demand, the employee's wages continue from the date of the demand until paid. They are paid at the employee's rate at separation, for no more than 60 days . The employee recovers this penalty through a civil action, which must be commenced within 60 days from the date of separation .
Commissioned sales agents. Some commission earnings are excluded. The final-pay section does not apply to the commission-based part of a sales agent's earnings if the agent has custody of the principal's accounts, money, or goods and the net amount due can be determined only after an audit or verification .
Sources for this answer
When an employer separates an employee from its payroll, the employee's unpaid wages are due immediately and must be paid within 24 hours at the specified place of payment.
When an employer separates an employee from the employer's payroll the unpaid wages of the employee become due immediately, and the employer shall pay the wages to the employee within 24 hours of the time of separation at the specified place of payment.
See Utah Code § 34-28-5(1)(a)
An employer meets the 24-hour final-pay deadline by mailing wages postmarked no more than one day after separation, or by starting a direct deposit or hand-delivering wages within 24 hours.
An employer satisfies the 24-hour time requirement described in Subsection (1)(a) if: (i) (A) the employer mails the wages to the employee; and (B) the envelope that contains the wages is postmarked with a date that is no more than one day after the day on which the employer separates the employee from the employer's payroll; or (ii) within 24 hours after the employer separates the employee from the employer's payroll, the employer: (A) initiates a direct deposit of the wages into the employee's account; or (B) hand delivers the wages to the employee.
See Utah Code § 34-28-5(1)(b)
When an employee without a written contract for a definite period resigns, earned and unpaid wages and any deposit properly belonging to the employee are due on the next regular payday.
If an employee does not have a written contract for a definite period and resigns the employee's employment, the wages earned and unpaid together with any deposit held by the employer and properly belonging to the resigned employee for the performance of the employee's employment duties become due and payable on the next regular payday.
See Utah Code § 34-28-5(2)
If wages due are not paid within 24 hours of a written demand, the employee's wages continue at the separation rate from the date of demand until paid, for no more than 60 days.
In case of failure to pay wages due an employee within 24 hours of written demand, the wages of the employee shall continue from the date of demand until paid, but in no event to exceed 60 days, at the same rate that the employee received at the time of separation.
See Utah Code § 34-28-5(1)(c)(i)
An employee recovers the continuing-wage penalty in a civil action that must be commenced within 60 days from the date of separation.
The employee may recover the penalty thus accruing to the employee in a civil action. This action shall be commenced within 60 days from the date of separation.
See Utah Code § 34-28-5(1)(c)(ii)
The final-pay section does not apply to the commission-based part of a custodial sales agent's earnings if the net amount due is determined only after an audit or verification.
For a sales agent employed in whole or in part on a commission basis who has custody of accounts, money, or goods of the sales agent's principal, this section does not apply to the commission-based portion of the sales agent's earnings if the net amount due the agent is determined only after an audit or verification of sales, accounts, funds, or stocks.
See Utah Code § 34-28-5(4)
What is the penalty for paying late?
Utah law lets the Labor Commission's Division of Antidiscrimination and Labor assess a daily penalty of 5% of unpaid wages for up to 20 days, and lets a court award 2.5% of unpaid wages daily for up to 20 days after its final order .
Administrative penalty. The Labor Commission's Division of Antidiscrimination and Labor may assess a penalty against an employer that fails to pay an employee as the wage-payment chapter requires. The penalty is 5% of the unpaid wages, assessed daily until paid, for up to 20 days . An employer that concedes a wage claim filed with the Division may pay or otherwise satisfy it within ten working days from the date of the Division's letter without being subject to that penalty , but an employer with more than two valid wage claims filed against it within a running year, not arising from the same facts or circumstances, remains subject to the penalty . Of the penalty money the Division receives, it retains 50% for the costs of administering the chapter, pays those retained sums to the state treasurer, and pays the other 50% to the employee .
Court-awarded amount. In a wage-claim action in court, the court may award the employee actual damages. It may also award 2.5% of the unpaid wages for each day, running from the court's final order until the employer pays or for 20 days after that order, whichever period is shorter. Where it applies, the court may also award the final-pay continuing-wage penalty .
Sources for this answer
The Division may assess an employer that fails to pay as the chapter requires a penalty of 5% of unpaid wages, assessed daily until paid for up to 20 days.
The division may assess against an employer who fails to pay an employee in accordance with this chapter, a penalty of 5% of the unpaid wages owing to the employee which shall be assessed daily until paid for a period not to exceed 20 days.
See Utah Code § 34-28-9(2)(a)
Utah Code 34-28-9(2)(b) requires the Division to retain half of a collected late-payment penalty for administering the chapter, remitted to the state treasurer, and to pay the other half to the employee.
The division shall: (i) retain 50% of the money received from a penalty payment under Subsection (2)(a) for the costs of administering this chapter; (ii) pay all the sums retained under Subsection (2)(b)(i) to the state treasurer; and (iii) pay the 50% not retained under Subsection (2)(b)(i) to the employee.
See Utah Code § 34-28-9(2)(b)
Utah Admin. Code R610-3-4(H) lets an employer that concedes a wage claim pay or satisfy it within ten working days of the Division's letter without the Utah Code 34-28-9(2) penalty.
Where the Defendant concedes the validity of the claim, the Defendant may pay or otherwise satisfy the claim within ten working days from the date of the letter without being subject to a penalty, under Section 34-28-9(2).
See Utah Admin. Code R610-3-4(H)
Utah Admin. Code R610-3-4(H)(1) keeps the Utah Code 34-28-9(2) penalty for repeat offenders with more than two valid wage claims within a running year that do not arise from the same facts or circumstances.
As an exception to Subsection H, defendants that are repeat offenders by having more than two wage claims filed against them within a running year, which claims are determined by the Division to be valid and to not have resulted from the same facts or circumstances, shall be subject to a penalty in accordance with Section 34-28-9(2).
See Utah Admin. Code R610-3-4(H)(1)
In a court wage-claim action, the court may award actual damages and 2.5% of unpaid wages daily after the final order, for up to 20 days, plus the final-pay penalty if applicable.
In an action under this section, the court may award an employee: (a) actual damages; (b) an amount equal to 2.5% of the unpaid wages owed to the employee, assessed daily for the lesser of: (i) the period beginning the day on which the court issues a final order and ending the day on which the employer pays the unpaid wages owed to the employee; or (ii) 20 days after the day on which the court issues a final order; and (c) a penalty described in Subsection 34-28-5(1)(c) , if applicable.
See Utah Code § 34-28-9.5(3)
How often must workers be paid?
Utah employers covered by the Payment of Wages Act must pay wages at regular intervals of no longer than semimonthly, on paydays set in advance, except that an employee hired on a yearly salary may be paid monthly .
Frequency. Wages for a pay period must be paid within 10 days after the period closes . When a payday falls on a Saturday, Sunday, or legal holiday, wages are due on the day before .
Annual salary exception. Monthly pay for a yearly-salaried employee is due on or before the seventh of the month after the month worked .
Notice at hire. At hiring, the employer must tell employees the day and place of payment and the rate of pay. It must also give notice of any change to those items before the change takes effect . Instead of individual notice, the employer may post those facts conspicuously at or near the place of work where each employee can see them coming and going .
Deduction statement. When an employer takes a deduction from wages, it must give the employee a statement on each regular payday showing the total amount of each deduction .
Limits on deductions. An employer may not withhold or divert part of an employee's wages unless (1) a court order or state or federal law requires the withholding, (2) the employee expressly authorizes the deduction in writing, (3) the employer presents evidence that in the opinion of a hearing officer or an administrative law judge would warrant an offset, or (4) the amount is the employee's contribution under an employer-established plan described in Section 401(k), 403(b), 408, 408A, or 457 of the Internal Revenue Code, subject to the statute's further conditions . An employer also may not require an employee to rebate, refund, offset, or return part of the wage, salary, or compensation to be paid to the employee, except as the statutory exceptions to the limit on withholding wages allow .
Pay statements for licensed construction employers. An employer licensed under the Utah Construction Trades Licensing Act must, on each payday and however it pays, give each employee a written or electronic pay statement showing the employee's name, base rate of pay, pay-period dates, hours worked if paid hourly, the amount of and reason for each withholding, and the total paid . The cited sections impose that itemized statement only on those licensed employers.
Coverage. The wage-payment chapter does not apply to the state or local governments, farm and agricultural employment, stock or poultry raising, household domestic service, or other employment where the employer and employee have agreed to different terms of payment. The final-pay section still applies to farm, agricultural, and stock or poultry employers and employees . Separately, no provision of the chapter can be set aside by a mutual agreement unless the Division approves the agreement, although the chapter never bars paying more often, paying more, or paying in full early .
Sources for this answer
An employer must pay earned wages at regular intervals no longer than semimonthly, on paydays designated in advance.
An employer shall pay the wages earned by an employee at regular intervals, but in periods no longer than semimonthly on days to be designated in advance by the employer as the regular payday.
See Utah Code § 34-28-3(1)(a)
An employer must pay for services rendered in a pay period within 10 days after that period closes.
An employer shall pay for services rendered during a pay period within 10 days after the close of that pay period.
See Utah Code § 34-28-3(1)(b)
When a payday falls on a Saturday, Sunday, or legal holiday, the employer must pay on the preceding day.
If a payday falls on a Saturday, Sunday, or legal holiday, an employer shall pay wages earned during the pay period on the day preceding the Saturday, Sunday, or legal holiday.
See Utah Code § 34-28-3(1)(c)
An employer may pay a yearly-salaried employee monthly, on or before the seventh of the following month.
If an employer hires an employee on a yearly salary basis, the employer may pay the employee on a monthly basis by paying on or before the seventh of the month following the month for which services are rendered.
See Utah Code § 34-28-3(1)(d)
Every employer must tell employees at hiring the day and place of payment and the rate of pay, and give notice of any change before it occurs.
It shall be the duty of every employer to notify the employer's employees at the time of hiring of the day and place of payment, of the rate of pay, and of any change with respect to any of these items prior to the time of the change.
See Utah Code § 34-28-4(1)
Utah Code 34-28-4(1) lets an employer give the payday, place-of-payment and rate notice by keeping those facts posted conspicuously at or near the place of work.
Alternatively, however, every employer shall have the option of giving such notification by posting these facts and keeping them posted conspicuously at or near the place of work where such posted notice can be seen by each employee as the employee comes or goes to the employee's place of work.
See Utah Code § 34-28-4(1)
An employer that deducts from wages must give the employee a statement on each regular payday showing the total of each deduction.
If a deduction is made from the wages paid, the employer shall, on each regular payday, furnish the employee with a statement showing the total amount of each deduction.
See Utah Code § 34-28-3(4)
A Utah employer may not withhold or divert part of an employee's wages unless required by court order or law, expressly authorized by the employee in writing, warranted as an offset in a hearing officer's or administrative law judge's opinion, or contributed under a qualifying employer retirement plan.
An employer may not withhold or divert part of an employee's wages unless: (a) the employer is required to withhold or divert the wages by: (i) court order; or (ii) state or federal law; (b) the employee expressly authorizes the deduction in writing; (c) the employer presents evidence that in the opinion of a hearing officer or an administrative law judge would warrant an offset; or (d) subject to Subsection (8) , the employer withholds or diverts the wages: (i) as a contribution of the employee under a contract or plan that is: (A) described in Section 401(k), 403(b), 408, 408A, or 457, Internal Revenue Code; and (B) established by the employer;
See Utah Code § 34-28-3(6)
A Utah employer may not require an employee to rebate, refund, offset, or return part of the employee's pay except as Subsection (6) allows.
An employer may not require an employee to rebate, refund, offset, or return a part of the wage, salary, or compensation to be paid to the employee except as provided in Subsection (6) .
See Utah Code § 34-28-3(7)
Utah Code 34-28-3(5) requires an employer licensed under the Utah Construction Trades Licensing Act to give each employee an itemized written or electronic pay statement on every payday, whatever the payment method.
An employer licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act , shall: (a) on the day on which the employer pays an employee, give the employee a written or electronic pay statement that states: (i) the employee's name; (ii) the employee's base rate of pay; (iii) the dates of the pay period for which the individual is being paid; (iv) if paid hourly, the number of hours the employee worked during the pay period; (v) the amount of and reason for any money withheld in accordance with state or federal law, including: (A) state and federal income tax; (B) Social Security tax; (C) Medicare tax; and (D) court-ordered withholdings; and (vi) the total amount paid to the employee for that pay period; and (b) comply with the requirements described in Subsection (5)(a) regardless of whether the employer pays the employee by check, cash, or other means.
See Utah Code § 34-28-3(5)
The wage-payment chapter excludes public employers, agricultural and domestic employment, and employment under agreements for different payment terms, but the final-pay section still applies to agricultural and stock or poultry employment.
None of the provisions of this chapter shall apply to the state, or to any county, incorporated city or town, or other political subdivision, or to employers and employees engaged in farm, dairy, agricultural, viticultural or horticultural pursuits or to stock or poultry raising, or to household domestic service, or to any other employment where an agreement exists between employer and employee providing for different terms of payment, except the provisions of Section 34-28-5 shall apply to employers or employees engaged in farm, dairy, agricultural, viticultural, horticultural or stock or poultry raising.
See Utah Code § 34-28-1
Utah Code 34-28-7 bars setting aside any provision of the wage-payment chapter by mutual agreement unless the Division approves the agreement, while permitting more frequent, larger, or early payment.
Nothing contained in this chapter shall in any way limit or prohibit the payment of wages or compensation at more frequent intervals, or in greater amounts or in full when or before due, but no provisions of this chapter can in any way be contravened or set aside by a mutual agreement unless the agreement is approved by the division.
See Utah Code § 34-28-7
Employee or independent contractor?
Utah's wage-payment chapter defines employer by adopting the definition in the federal Fair Labor Standards Act, 29 U.S.C. § 203 . The Utah Minimum Wage Act and its terms, including the computation of wages, must be interpreted consistently with the Fair Labor Standards Act to the extent that federal Act relates to paying a minimum wage, subject to the Minimum Wage Act's joint-employer provision . Both Utah chapters therefore look to the federal Fair Labor Standards Act's definitions, subject to the Utah-specific rules below.
The wage-payment chapter and the Minimum Wage Act both provide that, in deciding whether two or more persons are joint employers under that chapter, an administrative ruling of a federal executive agency is not treated as generally applicable law unless a court determines that the ruling is generally applicable or the ruling is adopted by statute or rule . Under the wage-payment chapter and the Minimum Wage Act, a franchisor is not considered the employer of a franchisee or of a franchisee's employee, except that this rule does not apply, for a specific claim under that chapter by a franchisee or a franchisee's employee, to a franchisor that exercises a type or degree of control over the franchisee or the franchisee's employee not customarily exercised by a franchisor to protect its trademarks and brand .
Utah also has a narrow presumption for construction businesses. An unincorporated entity that must be licensed under the Utah Construction Trades Licensing Act is presumed to be the employer of each person who holds an ownership interest in it, directly or indirectly . The presumption applies only to unincorporated entities required to be licensed under that Act and only for the wage-payment chapter, and the entity may rebut it by clear and convincing evidence that the individual is an active manager, holds at least an 8% ownership interest, or is not subject to supervision or control in performing the work .
Sources for this answer
For Utah's wage-payment chapter, employer has the same meaning as in the federal Fair Labor Standards Act at 29 U.S.C. 203.
“Employer” means the same as that term is defined in 29 U.S.C. Sec. 203.
See Utah Code § 34-28-2(1)(c)(i)
Utah Code 34-40-102(1) requires the Utah Minimum Wage Act and its terms to be interpreted consistently with the federal Fair Labor Standards Act to the extent that Act relates to paying a minimum wage.
Subject to Subsection (3) , this chapter and the terms used in it, including the computation of wages, shall be interpreted consistently with the Fair Labor Standards Act of 1938, 29 U.S.C. Sec. 201 et seq., as amended, to the extent that act relates to the payment of a minimum wage.
See Utah Code § 34-40-102(1)
For joint-employer determinations under Utah's wage-payment chapter, a federal executive agency's administrative ruling is not generally applicable law unless a court finds it generally applicable or it is adopted by statute or rule.
For purposes of determining whether two or more persons are considered joint employers under this chapter, an administrative ruling of a federal executive agency may not be considered a generally applicable law unless that administrative ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.
See Utah Code § 34-28-2(3)
For joint-employer determinations under the Utah Minimum Wage Act, a federal executive agency's administrative ruling is not generally applicable law unless a court finds it generally applicable or it is adopted by statute or rule.
Notwithstanding Subsection (1) , for purposes of determining whether two or more persons are considered joint employers under this chapter, an administrative ruling of a federal executive agency may not be considered a generally applicable law unless that administrative ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.
See Utah Code § 34-40-102(3)
Under Utah's wage-payment chapter a franchisor is not the employer of a franchisee or a franchisee's employee, unless the franchisor exercises control beyond what is customary to protect its trademarks and brand.
(a) For purposes of this chapter, a franchisor is not considered to be an employer of: (i) a franchisee; or (ii) a franchisee's employee. (b) With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise that exercises a type or degree of control over the franchisee or the franchisee's employee not customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks and brand.
See Utah Code § 34-28-2(4)
Under the Utah Minimum Wage Act a franchisor is not the employer of a franchisee or a franchisee's employee, unless the franchisor exercises control beyond what is customary to protect its trademarks and brand.
(a) For purposes of this chapter, a franchisor is not considered to be an employer of: (i) a franchisee; or (ii) a franchisee's employee. (b) With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise that exercises a type or degree of control over the franchisee or the franchisee's employee not customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks and brand.
See Utah Code § 34-40-102(4)
An unincorporated entity required to be licensed under the Utah Construction Trades Licensing Act is presumed to employ each individual holding a direct or indirect ownership interest in it.
For purposes of this chapter, an unincorporated entity that is required to be licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act , is presumed to be the employer of each individual who, directly or indirectly, holds an ownership interest in the unincorporated entity.
See Utah Code § 34-28-2(2)(a)
Utah Code 34-28-2(2)(b) lets an unincorporated entity required to be licensed under the Utah Construction Trades Licensing Act rebut the owner-employer presumption by clear and convincing evidence of one of three listed grounds.
Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , an unincorporated entity may rebut the presumption under Subsection (2)(a) for an individual by establishing by clear and convincing evidence that the individual: (i) is an active manager of the unincorporated entity; (ii) directly or indirectly holds at least an 8% ownership interest in the unincorporated entity; or (iii) is not subject to supervision or control in the performance of work by: (A) the unincorporated entity; or (B) a person with whom the unincorporated entity contracts.
See Utah Code § 34-28-2(2)(b)
Is a tip credit allowed?
Utah allows a tip credit: the Labor Commission's rule sets an employer's cash wage obligation toward the minimum wage for a tipped employee at no less than $2.13 an hour . If tips plus the $2.13 cash wage do not reach the minimum hourly wage, the employer must raise the cash wage to cover the gap .
The Utah rule adds these conditions:
- Tip threshold. Before any credit is allowed, the employee must receive the tips, report them to the employer, and receive at least $30.00 a month in tips .
- Notice at hire. An employer that uses the tip credit must tell the affected employee at the time of hire .
- Tip retention. A tipped employee keeps all tips and gratuities, except to the extent the employee takes part in a bona fide tip pool or sharing arrangement with other tipped employees .
- Written pooling arrangement. Any tip pool or sharing arrangement must be in writing. It must be given to each affected employee at hire or before the arrangement starts .
Sources for this answer
An employer's cash wage obligation toward the minimum wage for a tipped employee is at least $2.13 per hour.
An employer has a cash wage obligation of at least $2.13 per hour in meeting the required minimum wage.
See Utah Admin. Code R610-1-4(B)
If tips plus the $2.13 cash wage fall short of the minimum hourly wage, the employer must raise the cash wage to make up the difference.
If an employee's tips combined with the employer's cash wage obligation of $2.13 per hour do not equal the minimum hourly wage requirement, the employer must increase its cash wage obligation to make up the difference.
See Utah Admin. Code R610-1-4(B)
A tip credit is allowed only for tips the employee receives and reports to the employer that total at least $30.00 per month.
The tips must be received by the employee, reported to the employer, and must reach a threshold of at least $30.00 per month before credit can be allowed.
See Utah Admin. Code R610-1-4(A)
An employer using the tip credit must inform the affected employee at the time of hire.
Every employer using the tip credit must so inform the affected employee at the time of hire.
See Utah Admin. Code R610-1-4(E)
A tipped employee retains all tips and gratuities except through a bona fide tip pooling or sharing arrangement with other tipped employees.
A tipped employee shall retain all tips and gratuities except to the extent that the employee participates in a bona fide tip pooling or sharing arrangement with other tipped employees.
See Utah Code § 34-40-104(4)(c)
A tip pooling or sharing arrangement must be in writing and given to each affected employee at hire or before implementation.
Any tip pooling or sharing arrangement must be made in writing and provided to each affected employee at the time of hire or prior to implementation.
See Utah Admin. Code R610-1-4(E)
How is it enforced?
Utah wage law is enforced both by the Labor Commission's Division of Antidiscrimination and Labor, which must enforce the Utah Minimum Wage Act and investigate complaints under it, and by employees, who may bring a civil action to enforce their rights under that Act .
Agency enforcement. The Division may bring administrative proceedings and may impose a penalty of up to $500 per violation of the Act .
Wage claims with the Division. An employee who has not been paid all wages due, or who is harmed by a violation of a statutory provision, may file a claim with the Division on the Division's form . A wage claim must be filed within one year after the day the wages were earned . The Division accepts wage claims of at least $50 and no more than $10,000 .
Court actions for unpaid wages. For a wage claim of $10,000 or less, an employee must first exhaust the Division's administrative process before filing suit . An employee may go directly to court when the wage claim is over $10,000, when additional claims against the same employer bring the total above $10,000, or when several employees in one action together claim more than $10,000 .
Retaliation. Under the Payment of Wages Act's retaliation section, when the Division determines that a violation has occurred, it may require the employer to stop any retaliatory action, to compensate the employee for lost wages and benefits, or both .
Private lawsuits for minimum wage. The Minimum Wage Act's civil action is available in addition to the Act's administrative and criminal remedies . An aggrieved employee is entitled to injunctive relief and may recover the difference between the wage paid and the minimum wage, plus interest . The court may award court costs and attorney fees to the prevailing party in that action . The action must be brought within two years of the alleged violation .
Recordkeeping. Employers must keep payroll records for employees covered by the Minimum Wage Act. The records must show each employee's name, address, date of birth, hours worked, and wages paid, and they must be kept for three years .
Sources for this answer
The Division must enforce the Utah Minimum Wage Act and investigate complaints under it.
The division shall enforce this chapter and investigate complaints under this chapter.
See Utah Code § 34-40-202
The Division may bring administrative proceedings and impose a penalty of up to $500 per violation of the Utah Minimum Wage Act.
The division may commence administrative proceedings in accordance with Title 63G, Chapter 4, Administrative Procedures Act , and may impose a penalty of up to $500 per violation of this chapter.
See Utah Code § 34-40-202
An employee denied full payment of wages due, or harmed by a statutory violation, may file a claim with the Division on the Division's form.
An employee who is denied full payment of wages due or is affected or aggrieved by a violation of a statutory provision may file a claim with the Division on a form provided by the Division for that purpose.
See Utah Admin. Code R610-3-4
A wage claim must be filed within one year after the day the wages were earned.
A wage claim shall be filed within one year after the day on which the wages were earned.
See Utah Code § 34-28-9(1)(e)
Utah Code 34-28-9(1) sets the smallest wage claim the Division may accept at $50 and the largest at $10,000.
The minimum wage claim that the division may accept is $50. (d) The maximum wage claim that the division may accept is $10,000.
See Utah Code § 34-28-9(1)(c)-(d)
Utah Code 34-28-9.5(1) requires an employee with a wage claim of $10,000 or less to exhaust the Division's administrative remedies before suing, except as subsection (2) provides.
Except as provided in Subsection (2), for a wage claim that is less than or equal to $10,000, the employee shall exhaust the employee's administrative remedies described in Section 34-28-9 and rules made by the commission under Section 34-28-9 before the employee may file an action in a court with jurisdiction under Title 78A, Judiciary and Judicial Administration .
See Utah Code § 34-28-9.5(1)
Utah Code 34-28-9.5(2) lets an employee sue without exhausting administrative remedies when the wage claim exceeds $10,000, when added claims against the same employer exceed $10,000 in total, or when several employees in one action together claim more than $10,000.
An employee may file an action for a wage claim in a court without exhausting the administrative remedies described in Section 34-28-9 and rules made by the commission under Section 34-28-9 if: (a) the employee's wage claim is over $10,000; (b) (i) the employee's wage claim is less than or equal to $10,000; (ii) the employee asserts one or more additional claims against the same employer; and (iii) the aggregate amount of damages resulting from the claims described in this Subsection (2)(b) is greater than $10,000; or (c) (i) in the same civil action, more than one employee files a wage claim against an employer; and (ii) the aggregate amount of the employees' combined wage claim is greater than $10,000.
See Utah Code § 34-28-9.5(2)
Utah Code 34-28-19(3) lets the Division, on finding a violation, require the employer to stop retaliatory action, compensate the employee for lost wages and benefits, or both.
If the division determines that a violation has occurred, the division may require the employer to: (a) cease and desist any retaliatory action; (b) compensate the employee, which compensation may not exceed reimbursement for, and payment of, lost wages and benefits to the employee; or (c) do both Subsections (3)(a) and (b) .
See Utah Code § 34-28-19(3)
An employee may bring a civil action to enforce rights under the Utah Minimum Wage Act, in addition to its administrative and criminal remedies.
In addition to the administrative and criminal actions authorized by this chapter, an employee may bring a civil action to enforce the employee's rights under this chapter.
See Utah Code § 34-40-205(1)
An aggrieved employee is entitled to injunctive relief and may recover the shortfall between the wage paid and the minimum wage, plus interest.
An aggrieved employee is entitled to injunctive relief and may recover the difference between the wage paid and the minimum wage, plus interest.
See Utah Code § 34-40-205(2)(a)
Utah Code 34-40-205(2)(b) lets the court award court costs and attorney fees to the prevailing party in a Minimum Wage Act civil action.
The court may award court costs and attorney fees to the prevailing party.
See Utah Code § 34-40-205(2)(b)
A civil action under the Utah Minimum Wage Act must be brought within two years of the alleged violation.
An action brought under this section shall be brought within two years of the alleged violation.
See Utah Code § 34-40-205(3)
Employers must keep payroll records for covered employees showing names, addresses, dates of birth, hours worked, and wages paid, and must keep them for three years.
Employers shall keep payroll records of employees covered by this chapter showing names, addresses, and dates of birth. Such records shall also show hours worked and wages paid to all covered employees. Records shall be maintained for three years.
See Utah Code § 34-40-201