S.B. 188

1

LABOR CODE REVISIONS
2 2002 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Terry R. Spencer
5 This act modifies provisions of the Labor Code. This act modifies definitions to limit
6 application of the section to employees whose terms of employment are governed by a
7 collective bargaining agreement. This act permits electronic processing of employees' payroll
8 deductions. This act makes technical changes.
9 This act affects sections of Utah Code Annotated 1953 as follows:
10 AMENDS:
11 34-32-1, as repealed and reenacted by Chapter 285, Laws of Utah 2001
12 Be it enacted by the Legislature of the state of Utah:
13 Section 1. Section 34-32-1 is amended to read:
14 34-32-1. Voluntary contributions act -- Assignments to labor unions -- Effect.
15 (1) As used in this section:
16 (a) "Employee" means a person employed by any person, partnership, public, private, or
17 municipal corporation, school district, the state, or any political subdivision of the state.
18 (b) "Employer" means the person or entity employing an employee.
19 (c) (i) "Labor organization" means any association or organization of employees, and any
20 agency, employee representation committee, or plan in which employees participate that exists,
21 in whole or in part, to advocate on behalf of employees about grievances, labor disputes, wages,
22 rates of pay, hours of employment, or conditions of employment.
23 (ii) Except as provided in Subsection (1)(c)(iii), "labor organization" includes each
24 employee association and union for employees of public and private sector employers.
25 (iii) "Labor organization" does not include organizations governed by the National Labor
26 Relations Act, 29 U.S.C. Sec. 151 et seq. or the Railroad Labor Act, 45 U.S.C. Sec. 151 et seq.
27 (d) "Public employee" means a person whose terms of employment are governed by a

28 collective bargaining agreement and who is employed by the state, a municipal corporation, a
29 county, a municipality, a school district, a special district, or any other political subdivision of the
30 state.
31 (e) "Union dues" means dues, fees, or other monies required as a condition of membership
32 in a labor organization or as a condition of employment.
33 (2) Except as prohibited by Subsection (6), an employee may elect to direct his employer
34 to:
35 (a) deduct a specified sum of up to 3% per month from his wages; and
36 (b) pay the amount deducted to a labor organization as assignee.
37 (3) If the employee elects to direct the employer to make the deduction authorized by
38 Subsection (2), the employee shall sign a statement that:
39 (a) directs the employer to make the deduction;
40 (b) identifies the amount of the deduction;
41 (c) identifies the person or entity to whom the deduction is to be paid; and
42 (d) directs the employer to pay the deduction to that person or entity.
43 (4) An employer who receives a signed statement, or verifiable electronic confirmation of
44 the statement, shall:
45 (a) keep the statement or confirmation on file;
46 (b) [deduct the specified sum] make the deduction from the employee's salary; and
47 (c) pay the deducted amount to the labor organization designated by the employee.
48 (5) The employer shall continue to make and pay the deduction as directed by the
49 employee until the employee revokes or modifies the deduction in writing.
50 (6) A public employee may not direct an employer to deduct monies from his wages and
51 pay them to:
52 (a) a registered political action committee;
53 (b) a fund as defined by Section 20A-11-1402 ; or
54 (c) any intermediary that contributes to a fund as defined in Section 20A-11-1402 .
55 (7) Nothing in this section prohibits an individual from making personal contributions to
56 a registered political action committee or to a fund as defined by Section 20A-11-1402 .

Legislative Review Note
as of 2-27-02 10:23 AM


A court could conclude that this statute violates the U.S. Constitutions' equal protection clause and
the Utah Constitution's uniform operation clause because it prohibits only employees governed by
a collective bargaining agreement, and not all public employees, from authorizing that deductions
from wages be paid to registered political action committees or separate segregated funds.

Office of Legislative Research and General Counsel