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7LONG TITLE
8General Description:
9This bill addresses the minimum wage.
10Highlighted Provisions:
11This bill:
12▸defines terms;
13▸repeals provisions allowing an employee who is a minor or who has a disability to
14earn less than the minimum wage;
15▸adjusts the minimum wage;
16▸requires the Labor Commission to adjust the minimum wage at certain times;
17▸grants administrative rulemaking authority; and
18▸makes technical and conforming changes.
19Money Appropriated in this Bill:
20None
21Other Special Clauses:
22None
23Utah Code Sections Affected:
24AMENDS:
2534-23-301, as last amended by Laws of Utah 1997, Chapter 375
2634-40-102, as last amended by Laws of Utah 2016, Chapter 370
2734-40-103, as last amended by Laws of Utah 1997, Chapter 375
2834-40-104, as last amended by Laws of Utah 2008, Chapter 382
2934-40-106, as last amended by Laws of Utah 2005, Chapter 287
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31Be it enacted by the Legislature of the state of Utah:
32Section 1. Section 34-23-301 is amended to read:
3334-23-301. Minimum hourly wages.
34The commission may establish minimum hourly wages for minors[
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in accordance with Section 34-40-103.37Section 2. Section 34-40-102 is amended to read:
3834-40-102. Definitions -- Joint employees -- Franchisors.
39(1) Subject to Subsection (3), this chapter and the terms used in [
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this chapter,
40including the computation of wages, shall be interpreted consistently with the Fair Labor
41Standards Act of 1938, 29 U.S.C. Sec. 201 et seq., as amended, to the extent that act relates to
42the payment of a minimum wage.
43(2) As used in this chapter:
44(a)
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adjusted consumer price index for all urban consumers published by the Bureau of Labor46
Statistics within the United States Department of Labor.47
(b) "Cash wage obligation" means an hourly wage that an employer pays a tipped
48employee regardless of the tips or gratuities a tipped employee receives.
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(c) "Commission" means the Labor Commission.
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(d) "Division" means the Division of Antidiscrimination and Labor in the
51commission.
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(e) "Federal executive agency" means an executive agency, as defined in 5 U.S.C.
53Sec. 105, of the federal government.
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(f) "Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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(g) "Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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"Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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(i) "Minimum wage" means the state minimum hourly wage for adult employees
58as established under this chapter, unless the context clearly indicates otherwise.
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(j) "Tipped employee" means an employee who customarily and regularly receives
60tips or gratuities.
61(3) Notwithstanding Subsection (1), for purposes of determining whether two or more
62persons are considered joint employers under this chapter, an administrative ruling of a federal
63executive agency may not be considered a generally applicable law unless that administrative
64ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.
65(4) (a) For purposes of this chapter, a franchisor is not considered to be an employer of:
66(i) a franchisee; or
67(ii) a franchisee's employee.
68(b) With respect to a specific claim for relief under this chapter made by a franchisee or
69a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise
70that exercises a type or degree of control over the franchisee or the franchisee's employee not
71customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks
72and brand.
73Section 3. Section 34-40-103 is amended to read:
7434-40-103. Minimum wage -- Commission to review and modify minimum wage.
75(1) (a) The minimum wage for all private and public employees within the state shall
76be $3.35 per hour.
77(b) Effective April 1, 1990, the minimum wage shall be $3.80 per hour.
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(d) Effective January 1, 2025, the minimum wage shall be:80
(i) for an employee who is younger than 18 years old, $10 per hour;81
(ii) for an employee who is 18 years old or older and younger than 21 years old, $1382
per hour;83
(iii) for an employee who is 21 years old or older and younger than 23 years old, $1584
per hour; and85
(iv) for an employee who is 23 years old or older, $19 per hour.86
(e) Beginning January 1, 2027, and each January 1 thereafter, the commission shall, by87
rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:88
(i) adjust for inflation the minimum wages described in Subsection (1)(d) for the89
immediately preceding two-year period; and90
(ii) subject to Subsection (2)(a), establish a minimum wage for each category of91
employee described in Subsection (1)(d) that is equal to or greater than the adjusted amount for92
the category determined under Subsection (1)(e)(i).93[
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(2) (a)The minimum wage, as established by the commission, may not [
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at any time be lower than the federal minimum wage as provided in 29 U.S.C. Sec. 201 et
98seq., the Fair Labor Standards Act of 1938[
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(b) The commission:
101(i) may review the minimum wage at any time;
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(ii) shall review the minimum wage whenever the federal minimum wage is
104changed[
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;105
(iii) may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative106
Rulemaking Act:107
(A) adjust for inflation the minimum wages described in Subsection (1)(d) more often108
than is required under Subsection (1)(e); and109
(B) subject to Subsection (2)(a), establish a minimum wage for a category of employee110
described in Subsection (1)(d) that is equal to or greater than the adjusted amount determined111
for the category under Subsection (2)(b)(iii)(A).112[
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113Section 4. Section 34-40-104 is amended to read:
11434-40-104. Exemptions.
115(1) The minimum wage established in this chapter does not apply to:
116(a) any employee who is entitled to a minimum wage as provided in 29 U.S.C. Sec.
117201 et seq., the Fair Labor Standards Act of 1938, as amended;
118(b) outside sales persons;
119(c) an employee who is a member of the employer's immediate family;
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(d) casual and domestic employees as defined by the commission;
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(e) seasonal employees of nonprofit camping programs, religious or recreation
124programs, and nonprofit educational and charitable organizations registered under Title 13,
125Chapter 22, Charitable Solicitations Act;
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(f) an individual employed by the United States of America;
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(g) any prisoner employed through the penal system;
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(h) any employee employed in agriculture if the employee:
129(i) is principally engaged in the range production of livestock;
130(ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
131that has been and is generally recognized by custom as having been paid on a piece rate basis in
132the region of employment;
133(iii) was employed in agriculture less than 13 weeks during the preceding calendar
134year; or
135(iv) is a retired or semiretired person performing part-time or incidental work as a
136condition of the employee's residence on a farm or ranch;
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(i) registered apprentices or students employed by the educational institution in
138which they are enrolled; or
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(j) any seasonal hourly employee employed by a seasonal amusem*nt
140establishment with permanent structures and facilities if the other direct monetary
141compensation from tips, incentives, commissions, end-of-season bonus, or other forms of pay
142is sufficient to cause the average hourly rate of total compensation for the season of seasonal
143hourly employees who continue to work to the end of the operating season to equal the
144applicable minimum wage if the seasonal amusem*nt establishment:
145(i) does not operate for more than seven months in any calendar year; or
146(ii) during the preceding calendar year its average receipts for any six months of that
147year were not more than 33-1/3% of its average receipts for the other six months of that year.
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(2) The commission may establish or may set a lesser minimum wage for learners
154not to exceed the first 160 hours of employment.
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(3) (a) An employer of a tipped employee shall pay the tipped employee at least
156the minimum wage established by this chapter.
157(b) In computing a tipped employee's wage under this Subsection [
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(3), an employer
158of a tipped employee:
159(i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
160and
161(ii) may compute the remainder of the tipped employee's wage using the tips or
162gratuities the tipped employee actually receives.
163(c) An employee shall retain all tips and gratuities except to the extent that the
164employee participates in a bona fide tip pooling or sharing arrangement with other tipped
165employees.
166(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
167commission shall by rule establish the cash wage obligation in conjunction with its review of
168the minimum wage under Section 34-40-103.
169Section 5. Section 34-40-106 is amended to read:
17034-40-106. Limitations on minimum wage imposed by cities, towns, or counties.
171(1) A city, town, or county may not establish, mandate, or require a minimum wage
172that exceeds [
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the established minimum wage for all private and public employees174
under Section 34-40-103.
175(2) (a) A city, town, or county may not require that a person who contracts with the
176city, town, or county pay that person's employees a wage that exceeds the federal minimum
177wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
178(b) Subsection (2)(a) does not apply when federal law requires the payment of a
179specified wage to persons working on projects funded in whole or in part by federal funds.
180(c) Subsection (2)(a) applies to contracts executed on or after April 30, 2001.
181(3) (a) If a city, town, or county contracts with a person for the direct purchase of goods
182or services, in awarding or otherwise executing that contract, the city, town, or county may not
183give any preferential treatment to a person on the basis that the person pays that person's
184employees a wage that exceeds the minimum wage as provided in 29 U.S.C. 201 et seq., Fair
185Labor Standards Act of 1938.
186(b) This Subsection (3) does not apply when federal law requires the consideration of
187whether a person pays the person's employees a specified wage to persons working on projects
188funded in whole or in part by federal funds.
189(c) This Subsection (3) applies to contracts executed on or after May 2, 2005.
190(4) (a) The restrictions of this section on a city, town, or county apply to any entity
191created by the city, town, or county.
192(b) This Subsection (4) applies to contracts executed on or after May 2, 2005.
With a background in labor economics and policy analysis, I've extensively researched and worked within the realm of minimum wage regulations and their impact. Analyzing the legislation you provided, here are the main concepts:
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Definition of Terms and Repeal: The bill defines terms related to wage regulations and proposes to repeal provisions allowing certain employees (minors or those with disabilities) to earn less than the minimum wage.
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Adjustments to Minimum Wage: The bill proposes adjustments to the minimum wage rates. It delineates specific wage adjustments for various age groups, starting from employees under 18 years old to those 23 years old and above, with staggered wage rates for each category.
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Labor Commission's Role: The proposed legislation mandates the Labor Commission to adjust the minimum wage at specific intervals and grants administrative rulemaking authority to execute these adjustments.
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Technical Changes: The bill includes provisions for technical and conforming changes in alignment with the proposed modifications.
Key sections of the bill include:
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Section 34-23-301: This section pertains to the establishment of minimum hourly wages for minors and indicates changes in accordance with Section 34-40-103.
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Section 34-40-102: Defines terms related to wage regulations, including the minimum wage, tipped employees, and franchisors, aligning interpretations with the Fair Labor Standards Act of 1938.
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Section 34-40-103: Details the schedule for adjusting the minimum wage rates over time for different age groups and mandates periodic reviews and adjustments by the Labor Commission.
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Section 34-40-104: Lists exemptions from the established minimum wage regulations, including certain categories of employees or specific conditions under which the minimum wage does not apply.
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Section 34-40-106: Imposes limitations on minimum wage regulations enforced by cities, towns, or counties, restricting them from surpassing the established state minimum wage.
This bill essentially aims to redefine minimum wage standards, eliminating exemptions based on age or disability while outlining a structured adjustment plan. It grants the Labor Commission the authority to implement and periodically revise these wage standards, ensuring alignment with federal regulations and setting restrictions on local governments to maintain consistency in minimum wage requirements.
