Payment of Wages Chapter 28 - Utah State Legislature

1 Utah CodePage 1 Chapter 28 Payment of Wages34-28-1 Public and certain other employments excepted. None of the provisions of this Chapter shall apply to the State , or to any county, incorporatedcity or town, or other political subdivision, or to employers and employees engaged in farm, dairy,agricultural, viticultural or horticultural pursuits or to stock or poultry raising, or to householddomestic service, or to any other employment where an agreement exists between employer andemployee providing for different terms of Payment , except the provisions of Section 34-28-5 shallapply to employers or employees engaged in farm, dairy, agricultural, viticultural, horticultural orstock or poultry by Chapter 64, 1973 General Session34-28-2 Definitions -- Unincorporated entities -- Joint employers -- Franchisors.(1) As used in this Chapter :(a) "Commission" means the Labor Commission.

2 (b) "Division" means the Division of Antidiscrimination and Labor.(c)(i) "Employer" means the same as that term is defined in 29 Sec. 203.(ii) "Employer" does not include an individual who is not:(A) an officer;(B) a manager of a manager-managed limited liability company;(C) a member of a member-managed limited liability company;(D) a general partner of a limited partnership; or(E) a partner of a partnership.(d) " federal executive agency" means an executive agency, as defined in 5 Sec. 105, ofthe federal government.(e) "Franchise" means the same as that term is defined in 16 Sec. (f) "Franchisee" means the same as that term is defined in 16 Sec. (g) "Franchisor" means the same as that term is defined in 16 Sec. (h) "Unincorporated entity" means an entity organized or doing business in the State that is not:(i) an individual;(ii) a corporation; or(iii) publicly traded.

3 (i) " Wages " means the amounts due the employee for labor or services, whether the amount isfixed or ascertained on a time, task, piece, commission basis or other method of calculatingsuch amount.(2)(a) For purposes of this Chapter , an unincorporated entity that is required to be licensed underTitle 58, Chapter 55, Utah Construction Trades Licensing Act, is presumed to be the employerof each individual who, directly or indirectly, holds an ownership interest in the unincorporatedentity.(b) Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, an unincorporated entity may rebut the presumption underSubsection (2)(a) for an individual by establishing by clear and convincing evidence that theindividual:Utah CodePage 2(i) is an active manager of the unincorporated entity;(ii) directly or indirectly holds at least an 8% ownership interest in the unincorporated entity; or(iii) is not subject to supervision or control in the performance of work by:(A) the unincorporated entity; or(B) a person with whom the unincorporated entity contracts.

4 (c) As part of the rules made under Subsection (2)(b), the commission may define:(i) "active manager";(ii) "directly or indirectly holds at least an 8% ownership interest"; and(iii) "subject to supervision or control in the performance of work."(d) The commission by rule made in accordance with Title 63G, Chapter 3, Utah AdministrativeRulemaking Act, may establish a procedure, consistent with Section 34-28-7, under which anunincorporated entity may seek approval of a mutual agreement to pay Wages on non-regularpaydays.(3) For purposes of determining whether two or more persons are considered joint employersunder this Chapter , an administrative ruling of a federal executive agency may not beconsidered a generally applicable law unless that administrative ruling is determined to begenerally applicable by a court of law, or adopted by statute or rule.

5 (4)(a) For purposes of this Chapter , a franchisor is not considered to be an employer of:(i) a franchisee; or(ii) a franchisee's employee .(b) With respect to a specific claim for relief under this Chapter made by a franchisee or afranchisee's employee , this Subsection (4) does not apply to a franchisor under a franchisethat exercises a type or degree of control over the franchisee or the franchisee's employeenot customarily exercised by a franchisor for the purpose of protecting the franchisor'strademarks and by Chapter 386, 2018 General Session34-28-3 Regular paydays -- Currency or negotiable checks required -- Deposit in financialinstitution -- Statement of total deductions -- Unlawful withholding or diversion of Wages .(1)(a) An employer shall pay the Wages earned by an employee at regular intervals, but in periodsno longer than semimonthly on days to be designated in advance by the employer as theregular payday.

6 (b) An employer shall pay for services rendered during a pay period within 10 days after the closeof that pay period.(c) If a payday falls on a Saturday, Sunday, or legal holiday, an employer shall pay Wages earnedduring the pay period on the day preceding the Saturday, Sunday, or legal holiday.(d) If an employer hires an employee on a yearly salary basis, the employer may pay theemployee on a monthly basis by paying on or before the seventh of the month following themonth for which services are rendered.(e) Wages shall be paid in full to an employee :(i) in lawful money of the United states ;(ii) by a check or draft on a depository institution, as defined in Section 7-1-103, that isconvertible into cash on demand at full face value; or(iii) by electronic transfer to the depository institution designated by the CodePage 3(2) An employer may not issue in Payment of Wages due or as an advance on Wages to be earnedfor services performed or to be performed within this State an order, check, or draft unless:(a) it is negotiable and payable in cash, on demand, without discount, at a depository institution;and(b) the name and address of the depository institution appears on the instrument.

7 (3)(a) Except as provided in Subsection (3)(b), an employee may refuse to have the employee 'swages deposited by electronic transfer under Subsection (1)(e)(iii) by filing a written requestwith the employer.(b) An employee may not refuse to have the employee 's Wages deposited by electronic transferunder Subsection (3)(a) if:(i) for the calendar year preceding the pay period for which the employee is being paid, theemployer's federal employment tax deposits are equal to or in excess of $250,000; and(ii) at least two-thirds of the employees of the employer have their Wages deposited byelectronic transfer.(c) An employer may not designate a particular depository institution for the exclusive Payment ordeposit of a check or draft for Wages .(4) If a deduction is made from the Wages paid, the employer shall, on each regular payday, furnishthe employee with a statement showing the total amount of each deduction.

8 (5) An employer licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act,shall:(a) on the day on which the employer pays an employee , give the employee a written orelectronic pay statement that states :(i) the employee 's name;(ii) the employee 's base rate of pay;(iii) the dates of the pay period for which the individual is being paid;(iv) if paid hourly, the number of hours the employee worked during the pay period;(v) the amount of and reason for any money withheld in accordance with State or federal law,including:(A) State and federal income tax;(B) Social Security tax;(C) Medicare tax; and(D) court-ordered withholdings; and(vi) the total amount paid to the employee for that pay period; and(b) comply with the requirements described in Subsection (5)(a) regardless of whether theemployer pays the employee by check, cash, or other means.

9 (6) An employer may not withhold or divert part of an employee 's Wages unless:(a) the employer is required to withhold or divert the Wages by:(i) court order; or(ii) State or federal law;(b) the employee expressly authorizes the deduction in writing;(c) the employer presents evidence that in the opinion of a hearing officer or an administrativelaw judge would warrant an offset; or(d) subject to Subsection (8), the employer withholds or diverts the Wages :(i) as a contribution of the employee under a contract or plan that is:(A) described in Section 401(k), 403(b), 408, 408A, or 457, Internal Revenue Code; and(B) established by the employer; andUtah CodePage 4(ii) the contract or plan described in Subsection (6)(d)(i) provides that an employee 'scompensation is reduced by a specified contribution:(A) under the contract or plan; and(B) that is made for the employee unless the employee affirmatively elects:(I) to not have a reduction made as a contribution by the employee under the contract orplan; or(II) to have a different amount be contributed by the employee under the contract or plan.

10 (7) An employer may not require an employee to rebate, refund, offset, or return a part of thewage, salary, or compensation to be paid to the employee except as provided in Subsection(6).(8)(a) An employer shall notify an employee in writing of the right to make an election underSubsection (6)(d).(b) An employee may make an election described in Subsection (6)(d) at any time by providingthe employer written notice of the election.(c) An employer shall modify or terminate the withholding or diversion described in Subsection (6)(d) beginning with a pay period that begins no later than 30 days following the day on whichthe employee provides the employer the written notice described in Subsection (8)(b).(9) An employer is not prohibited from pursuing legitimate claims of damages, offsets, orrecoupments in a civil action against an by Chapter 188, 2014 General Session34-28-4 Notice of paydays -- Failure to notify a misdemeanor.