Minimum Wage Law Summaries
Utah, Minimum Wage Law Summaries
Utah's minimum wage law is codified in the Utah Code Annotated at Title 34, Chapter 40, Part I and Part II. The full text of the law is available beginning at ¶46-41,001 .
DEFINITIONS
The terms used in Utah's minimum wage law are interpreted consistently with the Fair Labor Standards Act of 1938 to the extent that act relates to the payment of a minimum wage (Sec. 34-40-102, as amended by H. 219, L. 2003, effective May 5, 2003).
“Cash wage obligation” means an hourly wage that an employer pays a tipped employee regardless of the tips or gratuities a tipped employee receives (Sec. 34-40-102, as amended by H. 219, L. 2003, effective May 5, 2003).
COVERAGE
Utah's minimum wage law covers all private and public adult employees, except those in certain occupations explained below.
EXCEPTIONS
The minimum wage established in Utah's minimum wage law does not apply to (Sec. 34-40-104, as amended by H. 219, L. 2003, effective May 5, 2003):
employees entitled to a minimum wage under the Fair Labor Standards Act;
outside salespersons;
employees who are members of the employer's immediate family;
companions for persons who, because of age or infirmity, are unable to care for themselves;
casual and domestic employees;
seasonal employees of nonprofit camping programs, religious or recreation programs, and nonprofit educational and charitable organizations registered under Utah's Charitable Solicitations Act;
individuals employed by the United States of America;
prisoners employed through the penal system;
agriculture employees principally engaged in the range production of livestock; harvest laborers who are paid on a piece rate basis in an operation that has been and is generally recognized by custom as having been paid on a piece rate basis in the region of employment; employees who worked in agriculture less than 13 weeks during the preceding calendar year; or retired or semiretired persons performing part-time or incidental work as a condition of their residence on a farm or ranch;
registered apprentices or students employed by the educational institution in which they are enrolled; or
seasonal hourly employees employed by a seasonal amusement establishment with permanent structures and facilities, if the other direct monetary compensation from tips, incentives, commissions, end-of-season bonus or other forms of pay is sufficient to cause the average hourly rate of total compensation for the season of seasonal hourly employees who continue to work to the end of the operating season to equal the applicable minimum wage if the establishment (a) does not operate for more than seven months in any calendar year; or (b) during the preceding calendar year, its average receipts for any six months of that year were not more than 33 1/3% of its average receipts for the other six months of the year.
WHAT THE EMPLOYER MUST DO
Effective July 24, 2008, Utah's minimum wage is $6.55 per hour.
“Living wages.” - Utah prohibits cities, towns and counties from establishing a minimum wage rate that exceeds the federal minimum wage rate established by the Fair Labor Standards Act. These local governments may not require their contractors to pay employees a wage that exceeds the federal minimum rate. The prohibition, applicable to contracts executed on or after April 30, 2001, does not apply when federal law requires the payment of a specified wage to persons working on projects funded in whole or in part by federal funds (Sec. 34-40-106, as amended by Ch. 287 (S. 139), L. 2005).
If a city, town, or county contracts with a person for the direct purchase of goods or services, in awarding or otherwise executing that contract, the city, town, or county may not give any preferential treatment to a person on the basis that the person pays that person's employees a wage that exceeds the federal minimum wage. This does not apply when federal law requires the consideration of whether a person pays the person's employees a specified wage to persons working on projects funded in whole or in part by federal funds (Sec. 34-40-106, as amended by Ch. 287 (S. 139), L. 2005, effective for contracts executed on or after May 2, 2005).
The restrictions of this section on a city, town, or county apply to any entity created by the city, town or county (Sec. 34-40-106, as amended by Ch. 287 (S. 139), L. 2005, effective for contracts executed on or after May 2, 2005).
Tipped employee credit.- An employer of a tipped employee shall pay the tipped employee at least the minimum wage. In computing a tipped employee's wage, an employer must pay the tipped employee at least the cash wage obligation as an hourly wage and may compute the remainder of the tipped employee's wage using the tips or gratuities the tipped employee actually receives. An 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. In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Labor Commission shall by rule establish the cash wage obligation in conjunction with its review of the minimum wage under Sec. 34-40-103 (Sec. 34-40-104, as amended by Ch. 382 (H. 63), L. 2008, effective May 5, 2008).
Subminimum wages.- Persons with a disability whose earnings or productive capacities are impaired by age, physical or mental deficiencies, or injury may be employed at wages that are lower than the minimum wage, if the wage is related to the employee's productivity. The Labor Commission may establish and regulate the wages paid or wage scales for these individuals (Sec. 34-40-104, as amended by Ch. 382 (H. 63), L. 2008, effective May 5, 2008).
Learners.- The Labor Commission may establish or may set a lesser minimum wage for learners not to exceed the first 160 hours of employment (Sec. 34-40-104, as amended by Ch. 382 (H. 63), L. 2008, effective May 5, 2008).
Minors.- A minor employee must be paid at least $4.25 per hour for the first 90 days of employment; thereafter, the minor must be paid at least the established minimum hourly wage (UAC R610-1-3).
Seasonal employees.- Seasonal hourly employees employed by seasonal amusement establishments with permanent structures and facilities are exempt from the minimum wage requirements under certain conditions. The rule applies if the seasonal employees' other direct monetary compensation from tips, incentives, commissions, end-of-season bonus or other forms of pay is sufficient to cause the average hourly rate of total compensation for the season of seasonal hourly employees who continue to work to the end of the operating season to equal the applicable minimum wage if the seasonal amusement establishment (Sec. 34-40-104, as amended by Ch. 382 (H. 63), L. 2008, effective May 5, 2008):
does not operate for more than seven months in any calendar year; or
during the preceding calendar year, its average receipts for any six months of that year were not more than 33 1/3 percent of its average receipts for the other six months of that year.
ENFORCEMENT
The Division of Antidiscrimination and Labor in the Labor Commission enforces the minimum wage law and investigates complaints (Sec. 34-40-202, as amended by Ch. 240, L. 1996).
Investigative authority.- The Division of Antidiscrimination and Labor in the Labor Commission has access to all payroll records of any covered place of business or establishment to investigate for compliance with the minimum wage law. The division also has access to business records kept at the place of business or establishment that may aid in the enforcement of the law (Sec. 34-40-203, as amended by Ch. 240, L. 1996).
Court actions.- Administrative and criminal actions are authorized to enforce Utah's minimum wage law (Sec. 34-40-205).
Employee's remedies.- An employee may bring a civil action to enforce his or her rights under Utah's minimum wage law. 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. An action brought for unpaid minimum wages must be brought within two years of the alleged violation (Sec. 34-40-205).
WHO TO CONTACT
Contact the Labor Commission at 160 E. 300 South, 3rd Floor, P.O. Box 146600, Salt Lake City, UT 84114-6600. Telephone: (801) 530-6880. Fax: (801) 530-6804.
RECORDKEEPING
Employers must make and keep payroll records for three years of employees covered by Utah's minimum wage law showing names, addresses, and dates of birth. The records must also show hours worked and wages paid to all covered employees (Sec. 34-40-201).
PENALTIES
The Division of Antidiscrimination and Labor may commence administrative proceedings in which a penalty of up to $500 per violation of the minimum wage law may be imposed (Sec. 34-40-202, as amended by Ch. 240, L. 1996).
Subsequent violations.- Repeated violation of the minimum wage law is a class B misdemeanor. “Repeated violations ” does not include separate violations as to individual employees arising out of the same investigation or enforcement action. Upon the third violation by the same employer within a three-year period, the Labor Commission may prosecute a criminal action (Sec. 34-40-204, as amended by S. 166, L. 1997, effective July 1, 1997).
<p>Subsequent violations.— Repeated violation of the minimum wage law is a class B misdemeanor.</p>