<section number="34-28-2"><effdate>5/8/2018</effdate><histories><history>Amended by Chapter <modchap sess="2018GS">386</modchap>, 2018 General Session</history><modyear>2018</modyear></histories><catchline>Definitions -- Unincorporated entities -- Joint employers -- Franchisors.</catchline><subsection number="34-28-2(1)">
As used in this chapter:
<subsection number="34-28-2(1)(a)">
"Commission" means the Labor Commission.</subsection><subsection number="34-28-2(1)(b)">
"Division" means the Division of Antidiscrimination and Labor.</subsection><subsection number="34-28-2(1)(c)"><subsection number="34-28-2(1)(c)(i)">
"Employer" means the same as that term is defined in 29 U.S.C. Sec. 203.</subsection><subsection number="34-28-2(1)(c)(ii)">
"Employer" does not include an individual who is not:
<subsection number="34-28-2(1)(c)(ii)(A)">
an officer;</subsection><subsection number="34-28-2(1)(c)(ii)(B)">
a manager of a manager-managed limited liability company;</subsection><subsection number="34-28-2(1)(c)(ii)(C)">
a member of a member-managed limited liability company;</subsection><subsection number="34-28-2(1)(c)(ii)(D)">
a general partner of a limited partnership; or</subsection><subsection number="34-28-2(1)(c)(ii)(E)">
a partner of a partnership.</subsection></subsection></subsection><subsection number="34-28-2(1)(d)">
"Federal executive agency" means an executive agency, as defined in 5 U.S.C. Sec. 105, of the federal government.</subsection><subsection number="34-28-2(1)(e)">
"Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.</subsection><subsection number="34-28-2(1)(f)">
"Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.</subsection><subsection number="34-28-2(1)(g)">
"Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.</subsection><subsection number="34-28-2(1)(h)">
"Unincorporated entity" means an entity organized or doing business in the state that is not:<subsection number="34-28-2(1)(h)(i)">
an individual;</subsection><subsection number="34-28-2(1)(h)(ii)">
a corporation; or</subsection><subsection number="34-28-2(1)(h)(iii)">
publicly traded.</subsection></subsection><subsection number="34-28-2(1)(i)">
"Wages" means the amounts due the employee for labor or services, whether the amount is fixed or ascertained on a time, task, piece, commission basis or other method of calculating such amount.</subsection></subsection><subsection number="34-28-2(2)"><subsection number="34-28-2(2)(a)">
For purposes of this chapter, an unincorporated entity that is required to be licensed under <xref depth="1" refnumber="58-55" start="0">Title 58, Chapter 55, Utah Construction Trades Licensing Act</xref>, is presumed to be the employer of each individual who, directly or indirectly, holds an ownership interest in the unincorporated entity.</subsection><subsection number="34-28-2(2)(b)">
Pursuant to rules made by the commission in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, an unincorporated entity may rebut the presumption under Subsection <xref depth="4" refnumber="34-28-2(2)(a)" start="0">(2)(a)</xref> for an individual by establishing by clear and convincing evidence that the individual:<subsection number="34-28-2(2)(b)(i)">
is an active manager of the unincorporated entity;</subsection><subsection number="34-28-2(2)(b)(ii)">
directly or indirectly holds at least an 8% ownership interest in the unincorporated entity; or</subsection><subsection number="34-28-2(2)(b)(iii)">
is not subject to supervision or control in the performance of work by:
<subsection number="34-28-2(2)(b)(iii)(A)">
the unincorporated entity; or</subsection><subsection number="34-28-2(2)(b)(iii)(B)">
a person with whom the unincorporated entity contracts.</subsection></subsection></subsection><subsection number="34-28-2(2)(c)">
As part of the rules made under Subsection <xref depth="4" refnumber="34-28-2(2)(b)" start="0">(2)(b)</xref>, the commission may define:<subsection number="34-28-2(2)(c)(i)">
"active manager";</subsection><subsection number="34-28-2(2)(c)(ii)">
"directly or indirectly holds at least an 8% ownership interest"; and</subsection><subsection number="34-28-2(2)(c)(iii)">
"subject to supervision or control in the performance of work."</subsection></subsection><subsection number="34-28-2(2)(d)">
The commission by rule made in accordance with <xref depth="1" refnumber="63G-3" start="0">Title 63G, Chapter 3, Utah Administrative Rulemaking Act</xref>, may establish a procedure, consistent with Section <xref depth="3" refnumber="34-28-7" start="0">34-28-7</xref>, under which an unincorporated entity may seek approval of a mutual agreement to pay wages on non-regular paydays.</subsection></subsection><subsection number="34-28-2(3)">
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.</subsection><subsection number="34-28-2(4)"><subsection number="34-28-2(4)(a)">
For purposes of this chapter, a franchisor is not considered to be an employer of:<subsection number="34-28-2(4)(a)(i)">
a franchisee; or</subsection><subsection number="34-28-2(4)(a)(ii)">
a franchisee's employee.</subsection></subsection><subsection number="34-28-2(4)(b)">
With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee's employee, this Subsection <xref depth="4" refnumber="34-28-2(4)" start="0">(4)</xref> 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.</subsection></subsection></section>