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7 LONG TITLE
8 General Description:
9 This bill addresses the minimum wage.
10 Highlighted Provisions:
11 This bill:
12 ▸ repeals minimum wage exemptions relating to an individual with a disability; and
13 ▸ makes technical and conforming changes.
14 Money Appropriated in this Bill:
15 None
16 Other Special Clauses:
17 This bill provides a special effective date.
18 Utah Code Sections Affected:
19 AMENDS:
20 34-40-104, as last amended by Laws of Utah 2023, Chapter 491
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22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Section 34-40-104 is amended to read:
24 34-40-104. Exemptions.
25 (1) The minimum wage established in this chapter does not apply to:
26 (a) an employee who is entitled to a minimum wage as provided in the Fair Labor
27 Standards Act of 1938, 29 U.S.C. Sec. 201 et seq.;
28 (b) an outside sales person;
29 (c) an employee who is a member of the employer's immediate family;
30 (d) companionship service for an individual who, because of age or infirmity, is unable
31 to care for the individual's self;
32 (e) casual and domestic employees as defined by the commission;
33 (f) a seasonal employee of a nonprofit camping program, religious or recreation
34 program, or nonprofit educational or charitable organization registered under Title 13, Chapter
35 22, Charitable Solicitations Act;
36 (g) an individual employed by the United States of America;
37 (h) a prisoner employed through the penal system;
38 (i) an employee employed in agriculture if the employee:
39 (i) is principally engaged in the range production of livestock;
40 (ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
41 that has been and is generally recognized by custom as having been paid on a piece rate basis in
42 the region of employment;
43 (iii) was employed in agriculture less than 13 weeks during the preceding calendar
44 year; or
45 (iv) is a retired or semiretired individual performing part-time or incidental work as a
46 condition of the employee's residence on a farm or ranch;
47 (j) a registered apprentice or student employed by the educational institution in which
48 the apprentice or student is enrolled; or
49 (k) a seasonal hourly employee employed by a seasonal amusement establishment with
50 permanent structures and facilities if the other direct monetary compensation from tips,
51 incentives, commissions, end-of-season bonus, or other forms of pay is sufficient to cause the
52 average hourly rate of total compensation for the season of seasonal hourly employees who
53 continue to work to the end of the operating season to equal the applicable minimum wage if:
54 (i) the seasonal amusement establishment does not operate for more than seven months
55 in any calendar year; or
56 (ii) during the preceding calendar year the seasonal amusement establishment's average
57 receipts for any six months of that year were not more than 33-1/3% of the seasonal amusement
58 establishment's average receipts for the other six months of that year.
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65 to exceed the first 160 hours of employment.
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67 the minimum wage established by this chapter.
68 (b) In computing a tipped employee's wage under this Subsection [
69 of a tipped employee:
70 (i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
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72 (ii) may compute the remainder of the tipped employee's wage using the tips or
73 gratuities the tipped employee actually receives.
74 (c) A tipped employee shall retain all tips and gratuities except to the extent that the
75 employee participates in a bona fide tip pooling or sharing arrangement with other tipped
76 employees.
77 (d) An employer may allow an employee who is not a tipped employee to participate in
78 a bona fide tip pooling or sharing arrangement with another employee who is not a tipped
79 employee in accordance with the Fair Labor Standards Act of 1938, 29 U.S.C. Sec. 201 et seq.,
80 and 29 C.F.R. Sec. 531.50 through 531.60.
81 (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
82 commission shall by rule establish the cash wage obligation in conjunction with the
83 commission's review of the minimum wage under Section 34-40-103.
84 Section 2. Effective date.
85 This bill takes effect on January 1, 2026.