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Second Substitute S.B. 186

Senator Pete Suazo proposes to substitute the following bill:


             1     
PAYMENT OF WAGES AMENDMENTS

             2     
2001 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Pete Suazo

             5      This act amends the Labor Code to address issues related to the payment of wages. This act
             6      requires notifying employees of rights. This act addresses penalties. This act takes effect on
             7      July 1, 2001.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          34-28-9, as last amended by Chapter 375, Laws of Utah 1997
             11          34-28-12, as enacted by Chapter 85, Laws of Utah 1969
             12      ENACTS:
             13          34-28-4.5, Utah Code Annotated 1953
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 34-28-4.5 is enacted to read:
             16          34-28-4.5. Notification of employees rights.
             17          (1) As used in this section:
             18          (a) "employee rights notification form" means a form:
             19          (i) developed by the commission; and
             20          (ii) meeting the requirements of Subsection (3);
             21          (b) "employee rights notification poster" means a poster:
             22          (i) developed by the commission; and
             23          (ii) meeting the requirements of Subsection (3); and
             24          (c) "working day" means a day other than:
             25          (i) Saturday;


             26          (ii) Sunday; or
             27          (iii) a legal holiday under Section 63-13-2 .
             28          (2) An employer shall:
             29          (a) post an employee rights notification poster in a location meeting the requirements set
             30      by rule made by the commission; or
             31          (b) provide an employee an employee rights notification form:
             32          (i) no later than three working days from the day the employee is hired by the employer;
             33      and
             34          (ii) at least annually with one of the employee's:
             35          (A) wage payments; or
             36          (B) if the employee receives wages through electronic transfer, notification of a wage
             37      payment.
             38          (3) The commission shall:
             39          (a) develop an employee rights notification form that:
             40          (i) provides a statement of an employee's rights under this chapter; and
             41          (ii) can be sent to an employee by the employer with an employee's:
             42          (A) wage payment; or
             43          (B) if the employee receives wages through electronic transfer, notification of a wage
             44      payment;
             45          (b) develop an employee rights notification poster that provides a statement of an
             46      employee's rights under this chapter;
             47          (c) provide to an employer at the request of the employer:
             48          (i) a copy of an employee rights notification form; or
             49          (ii) a copy of an employee rights notification poster; and
             50          (d) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, make
             51      rules regarding the location of where an employee rights notification poster is to be posted to
             52      provide reasonable notice to employees.
             53          Section 2. Section 34-28-9 is amended to read:
             54           34-28-9. Enforcement of chapter -- Rulemaking authority.
             55          (1) (a) The division shall:
             56          (i) ensure compliance with this chapter;


             57          (ii) investigate any alleged violations of this chapter; and
             58          (iii) determine the validity of any claim for any violation of this chapter filed with it by an
             59      employee.
             60          (b) The commission may make rules consistent with this chapter governing wage claims
             61      and payment of wages.
             62          (c) The minimum wage claim that the division may accept is $50.
             63          (d) The maximum wage claim that the division may accept is $10,000.
             64          (e) The wage claim shall be filed within one year of the date the wages were earned.
             65          (2) (a) The division may assess against an employer who fails to pay an employee in
             66      accordance with this chapter, a penalty of 5% of the unpaid wages owing to the employee which
             67      shall be assessed daily until paid for a period not to exceed 20 days.
             68          (b) The division shall:
             69          (i) retain 50% of the money received from the penalty payments for the costs of
             70      administering this chapter;
             71          (ii) pay all the sums retained under Subsection (2)(b)(i) to the state treasurer; and
             72          (iii) pay the 50% not retained under Subsection (2)(b)(i) to the employee.
             73          (3) (a) An abstract of any final award may be filed in the office of the clerk of the district
             74      court of any county in the state. If so filed, it shall be docketed in the judgment docket of that
             75      district court.
             76          (b) The time of the receipt of the abstract shall be noted by the clerk and entered in the
             77      judgment docket.
             78          (c) If filed and docketed, the award constitutes a lien from the time of the docketing upon
             79      the real property of the employer situated in the county for a period of eight years from the date
             80      of the award unless previously satisfied.
             81          (d) Execution may be issued on the award within the same time and in the same manner
             82      and with the same effect as if the award were a judgment of the district court.
             83          (4) (a) The commission may employ counsel, appoint a representative, or request the
             84      attorney general, or the county attorney for the county in which the plaintiff or the defendant
             85      resides, depending on the district in which the final award is docketed, to represent the commission
             86      on all appeals and to enforce judgments.
             87          (b) The counsel employed by the commission, the attorney general, or the county


             88      representing the commission, shall be awarded:
             89          (i) reasonable attorneys' fees, as specified by the commission; and
             90          (ii) costs for:
             91          (A) appeals when the plaintiff prevails; and
             92          (B) judgment enforcement proceedings.
             93          (5) (a) If an employer fails to pay a final award issued under this chapter within 30 days
             94      of the day the final award is no longer subject to further administrative or judicial appeal, the
             95      division may impose a penalty on the employer not to exceed an amount equal to three times the
             96      amount of the wage claim.
             97          (b) The penalty imposed and received under this Subsection (5) shall be retained by the
             98      division and distributed to the employee as provided in Subsection (2)(b).
             99          [(5)] (6) (a) The commission may enter into reciprocal agreements with the labor
             100      department or corresponding agency of any other state or with the person, board, officer, or
             101      commission authorized to act on behalf of that department or agency, for the collection in any
             102      other state of claims or judgments for wages and other demands based upon claims previously
             103      assigned to the commission.
             104          (b) The commission may, to the extent provided by any reciprocal agreement entered into
             105      under Subsection [(5)](6)(a), or by the laws of any other state, maintain actions in the courts of the
             106      other states for the collection of any claims for wages, judgments, and other demands and may
             107      assign the claims, judgments, and demands to the labor department or agency of any other state
             108      for collection to the extent that may be permitted or provided by the laws of that state or by
             109      reciprocal agreement.
             110          (c) The commission may maintain actions in the courts of this state upon assigned claims
             111      for wages, judgments, and demands arising in any other state in the same manner and to the same
             112      extent that the actions by the commission are authorized when arising in this state if:
             113          (i) the labor department or other corresponding agency of any other state or of any person,
             114      board, officer, or commission of that state authorized to act on behalf of the labor department or
             115      corresponding agency requests in writing that the commission commence and maintain the action;
             116      and
             117          (ii) the other state by legislation or reciprocal agreement extends the same comity to this
             118      state.


             119          Section 3. Section 34-28-12 is amended to read:
             120           34-28-12. Violations.
             121          (1) [Any] (a) In accordance with Title 63, Chapter 46b, Administrative Procedures Act,
             122      the division may for an employer who [shall violate, or fail to comply with any of the provisions
             123      of] violates this chapter [shall be guilty of a misdemeanor.] or that the division reasonably believes
             124      has violated this chapter:
             125          (i) conduct an administrative hearing;
             126          (ii) issue an order to cease and desist the conduct that is a violation of this chapter;
             127          (iii) impose a fine not to exceed $500 for each violation; or
             128          (iv) any combination of Subsections (1)(a)(i) through (iii).
             129          (b) For purposes of Subsection (1)(a), a single violation of this chapter may be conduct that
             130      an employer engaged in that involved all of the employer's employees or any portion of the
             131      employer's employees if the division determines that the violation constituted a single event or act.
             132          (2) [Any] An employer [who shall refuse] violates this chapter if the employer refuses to
             133      pay the wages due and payable when demanded as provided in this chapter [provided], or who
             134      [shall] falsely [deny] denies the amount [thereof,] of wages due or payable or that [the same is] the
             135      wages are due, with intent to secure for [himself] the employer or any other person any discount
             136      upon such indebtedness or with intent to annoy, harass, oppress, hinder, delay or defraud the
             137      person to whom [such] the indebtedness is due[, or who hires additional employees without
             138      advising each of them of every wage claim due and unpaid and of every judgment that the
             139      employer has failed to satisfy, shall be guilty of a misdemeanor].
             140          Section 4. Effective date.
             141          This act takes effect on July 1, 2001.


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