S.B. 43

1

MINIMUM WAGE AMENDMENTS
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Ed Mayne
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies minimum wage provisions.
10 Highlighted Provisions:
11 This bill:
12 . increases the minimum wage to $7 per hour;
13 . addresses review of minimum wages by the Labor Commission;
14 . deletes the exemption for persons covered by the Federal Fair Labor Standards Act;
15 and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill takes effect on July 1, 2006.
21 Utah Code Sections Affected:
22 AMENDS:
23 34-40-103, as last amended by Chapter 375, Laws of Utah 1997
24 34-40-104, as last amended by Chapter 151, Laws of Utah 2003
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 34-40-103 is amended to read:

28 34-40-103. Minimum wage -- Commission to review and modify minimum wage.
29 (1) [(a) The] Effective July 1, 2006 and subject to Subsection (3), the minimum wage
30 for all private and public employees within the state shall be [$3.35] $7 per hour.
31 [(b) Effective April 1, 1990, the minimum wage shall be $3.80 per hour.]
32 [(2) (a) After July 1, 1990, the commission may by rule establish the minimum wage or
33 wages as provided in this chapter that may be paid to employees in public and private
34 employment within the state.]
35 [(b) The minimum wage, as established by the commission, may not exceed the federal
36 minimum wage as provided in 29 U.S.C. Sec. 201 et seq., the Fair Labor Standards Act of
37 1938, as amended, in effect at the time of implementation of this section.]
38 [(c) The] (2) To recommend to the Legislature whether or not the minimum wage
39 should be changed, the commission:
40 [(i)] (a) may review the minimum wage at any time;
41 [(ii)] (b) shall review the minimum wage at least every three years; and
42 [(iii)] (c) shall review the minimum wage whenever the federal minimum wage is
43 changed.
44 (3) The commission may by rule provide for separate minimum hourly wages for
45 minors.
46 Section 2. Section 34-40-104 is amended to read:
47 34-40-104. Exemptions.
48 (1) The minimum wage established in this chapter does not apply to:
49 [(a) any employee who is entitled to a minimum wage as provided in 29 U.S.C. Sec.
50 201 et seq., the Fair Labor Standards Act of 1938, as amended;]
51 [(b)] (a) outside sales persons;
52 [(c)] (b) an employee who is a member of the employer's immediate family;
53 [(d)] (c) companionship service for persons who, because of age or infirmity, are
54 unable to care for themselves;
55 [(e)] (d) casual and domestic employees as defined by the commission;
56 [(f)] (e) seasonal employees of:
57 (i) nonprofit camping programs[,];
58 (ii) religious or recreation programs[,]; and

59 (iii) nonprofit educational and charitable organizations registered under Title 13,
60 Chapter 22, Charitable Solicitations Act;
61 [(g)] (f) an individual employed by the United States of America;
62 [(h)] (g) any prisoner employed through the penal system;
63 [(i)] (h) any employee employed in agriculture if the employee:
64 (i) is principally engaged in the range production of livestock;
65 (ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
66 that has been and is generally recognized by custom as having been paid on a piece rate basis in
67 the region of employment;
68 (iii) was employed in agriculture less than 13 weeks during the preceding calendar
69 year; or
70 (iv) is a retired or semiretired person performing part-time or incidental work as a
71 condition of the employee's residence on a farm or ranch;
72 [(j)] (i) registered apprentices or students employed by the educational institution in
73 which they are enrolled; or
74 [(k)] (j) any seasonal hourly employee employed by a seasonal amusement
75 establishment with permanent structures and facilities if:
76 (i) the other direct monetary compensation from [tips, incentives, commissions,
77 end-of-season bonus, or other forms of pay] the following is sufficient to cause the average
78 hourly rate of total compensation for the season of seasonal hourly employees who continue to
79 work to the end of the operating season to equal the applicable minimum wage [if]:
80 (A) tips;
81 (B) incentives;
82 (C) commissions;
83 (D) end-of-season bonus; or
84 (E) other form of pay; and
85 (ii) the seasonal amusement establishment:
86 [(i)] (A) does not operate for more than seven months in any calendar year; or
87 [(ii)] (B) during the preceding calendar year [its] has average receipts for any six
88 months of that year [were] that are not more than 33-1/3% of its average receipts for the other
89 six months of that year.

90 (2) (a) Persons with a disability whose earnings or productive capacities are impaired
91 by age, physical or mental deficiencies, or injury may be employed at wages that are lower than
92 the minimum wage, provided the wage is related to the employee's productivity.
93 (b) The commission may establish and regulate the wages paid or wage scales for
94 persons with a disability.
95 (3) The commission may establish or may set a lesser minimum wage for learners not
96 to exceed the first 160 hours of employment.
97 (4) (a) An employer of a tipped employee shall pay the tipped employee at least the
98 minimum wage established by this chapter.
99 (b) In computing a tipped employee's wage under this Subsection (4), an employer of a
100 tipped employee:
101 (i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
102 and
103 (ii) may compute the remainder of the tipped employee's wage using the tips or
104 gratuities the tipped employee actually receives.
105 (c) An employee shall retain all tips and gratuities except to the extent that the
106 employee participates in a bona fide tip pooling or sharing arrangement with other tipped
107 employees.
108 (d) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
109 commission shall by rule establish the cash wage obligation in conjunction with its review of
110 the minimum wage under Section 34-40-103 .
111 Section 3. Effective date.
112 This bill takes effect on July 1, 2006.




Legislative Review Note
as of 12-1-05 4:27 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel