7 LONG TITLE
8 General Description:
9 This bill amends provisions related to minimum wages.
10 Highlighted Provisions:
11 This bill:
12 ▸ modifies the minimum wage for a private or public employee within the state;
13 ▸ modifies the cash wage obligation for a tipped employee within the state; and
14 ▸ provides for future increases of the minimum wage and cash wage obligation.
15 Money Appropriated in this Bill:
17 Other Special Clauses:
19 Utah Code Sections Affected:
21 34-40-102, as last amended by Laws of Utah 2016, Chapter 370
22 34-40-103, as last amended by Laws of Utah 1997, Chapter 375
23 34-40-104, as last amended by Laws of Utah 2008, Chapter 382
24 34-40-106, as last amended by Laws of Utah 2005, Chapter 287
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 34-40-102 is amended to read:
28 34-40-102. Definitions -- Joint employees -- Franchisors.
29 (1) Subject to Subsection (3), this chapter and the terms used in it, including the
30 computation of wages, shall be interpreted consistently with the Fair Labor Standards Act of
31 1938, 29 U.S.C. Sec. 201 et seq., as amended, to the extent that act relates to the payment of a
32 minimum wage.
33 (2) As used in this chapter:
34 (a) "Cash wage obligation" means an hourly wage that an employer pays a tipped
35 employee regardless of the tips or gratuities [
36 (b) "Commission" means the Labor Commission created in Section 34A-1-103.
37 (c) "Division" means the Division of Antidiscrimination and Labor [
39 (d) "Federal executive agency" means an executive agency, as defined in 5 U.S.C. Sec.
40 105, of the federal government.
41 (e) "Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
42 (f) "Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
43 (g) "Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
44 (h) "Minimum wage" means the state minimum hourly wage for an adult [
46 (i) "Minor" means an individual who is 16 years old or younger.
48 tips or gratuities.
49 (3) Notwithstanding Subsection (1), for purposes of determining whether two or more
50 persons are considered joint employers under this chapter, an administrative ruling of a federal
51 executive agency may not be considered a generally applicable law unless that administrative
52 ruling is determined to be generally applicable by a court of law, or adopted by statute or rule .
53 (4) (a) For purposes of this chapter, a franchisor is not considered to be an employer of:
54 (i) a franchisee; or
55 (ii) a franchisee's employee.
56 (b) With respect to a specific claim for relief under this chapter made by a franchisee or
57 a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise
58 that exercises a type or degree of control over the franchisee or the franchisee's employee not
59 customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks
60 and brand.
61 Section 2. Section 34-40-103 is amended to read:
62 34-40-103. Minimum wage and cash wage obligation -- Commission to review
63 and modify minimum wage and cash wage obligation.
64 (1) [
65 within the state [
79 (2) (a) On and after July 1, 2017, and before July 1, 2018, the minimum wage is $10.25
80 per hour.
81 (b) On and after July 1, 2018, and before July 1, 2019, the minimum wage is $11.20
82 per hour.
83 (c) On and after July 1, 2019, and before July 1, 2020, the minimum wage is $12.15
84 per hour.
85 (d) On and after July 1, 2020, and before July 1, 2021, the minimum wage is $13.10
86 per hour.
87 (e) On and after July 1, 2021, and before July 1, 2022, the minimum wage is $14.05
88 per hour.
89 (f) On and after July 1, 2022, and before July 1, 2023, the minimum wage is $15.00 per
91 (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
92 commission may establish by rule a minimum hourly wage for minors that is different from the
93 minimum wage described in Subsection (1).
94 (4) The cash wage obligation for a tipped employee within the state is $5.00 per hour.
95 (5) The commission shall post, on the home page of the commission's website, a
96 conspicuous and clearly identified link to the current minimum wage and the current cash wage
98 Section 3. Section 34-40-104 is amended to read:
99 34-40-104. Exemptions.
100 (1) [
101 Standards Act of 1938, 29 U.S.C. Sec. 201 et seq., as amended, the minimum wage established
102 in this chapter does not apply to:
108 unable to care for themselves;
111 programs, and nonprofit educational and charitable organizations registered under Title 13,
112 Chapter 22, Charitable Solicitations Act;
116 (i) is principally engaged in the range production of livestock;
117 (ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
118 that has been and is generally recognized by custom as having been paid on a piece rate basis in
119 the region of employment;
120 (iii) was employed in agriculture less than 13 weeks during the preceding calendar
121 year; or
122 (iv) is a retired or semiretired person performing part-time or incidental work as a
123 condition of the employee's residence on a farm or ranch;
125 which they are enrolled; or
127 establishment with permanent structures and facilities if the other direct monetary
128 compensation from tips, incentives, commissions, end-of-season bonus, or other forms of pay
129 is sufficient to cause the average hourly rate of total compensation for the season of seasonal
130 hourly employees who continue to work to the end of the operating season to equal the
131 applicable minimum wage if the seasonal amusement establishment:
132 (i) does not operate for more than seven months in any calendar year; or
133 (ii) during the preceding calendar year its average receipts for any six months of that
134 year were not more than 33-1/3% of its average receipts for the other six months of that year.
135 (2) (a) Persons with a disability whose earnings or productive capacities are impaired
136 by age, physical or mental deficiencies, or injury may be employed at wages that are lower than
137 the minimum wage, provided the wage is related to the employee's productivity.
138 (b) The commission may establish and regulate the wages paid or wage scales for
139 persons with a disability.
140 (3) The commission may establish or may set a lesser minimum wage for learners not
141 to exceed the first 160 hours of employment.
142 (4) (a) An employer of a tipped employee shall pay the tipped employee at least the
143 minimum wage established by this chapter.
144 (b) In computing a tipped employee's wage under this Subsection (4), an employer of a
145 tipped employee:
146 (i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
148 (ii) may compute the remainder of the tipped employee's wage using the tips or
149 gratuities the tipped employee actually receives.
150 (c) An employee shall retain all tips and gratuities except to the extent that the
151 employee participates in a bona fide tip pooling or sharing arrangement with other tipped
156 Section 4. Section 34-40-106 is amended to read:
157 34-40-106. Limitations on minimum wage imposed by cities, towns, or counties.
158 (1) A city, town, or county may not establish, mandate, or require a minimum wage
159 that exceeds the [
161 (2) (a) A city, town, or county may not require that a person who contracts with the
162 city, town, or county pay [
163 minimum wage [
164 described in Section 34-40-103.
165 (b) Subsection (2)(a) does not apply when federal law requires the payment of a
166 specified wage to persons working on projects funded in whole or in part by federal funds.
167 (c) Subsection (2)(a) applies to contracts executed on or after [
169 (3) (a) If a city, town, or county contracts with a person for the direct purchase of goods
170 or services, in awarding or otherwise executing that contract, the city, town, or county may not
171 give any preferential treatment to a person on the basis that the person pays that person's
172 employees a wage that exceeds the minimum wage [
174 (b) This Subsection (3) does not apply when federal law requires the consideration of
175 whether a person pays the person's employees a specified wage to persons working on projects
176 funded in whole or in part by federal funds.
177 (c) This Subsection (3) applies to contracts executed on or after [
179 (4) (a) The restrictions of this section on a city, town, or county apply to any entity
180 created by the city, town, or county.
181 (b) This Subsection (4) applies to contracts executed on or after [
Legislative Review Note
Office of Legislative Research and General Counsel