- Minimum Wage
- Tip Minimum Wage
- Tip Pooling and Sharing
- Subminimum Wage
- Utah Minimum Wage Laws 2022 FAQs
- Other State’s Minimum Wage Information
Utah’s current state-mandated minimum wage is $7.25 per hour, based on federal government mandate.
Utah minimum wage laws give authority to the Utah Labor Commission to set the minimum wage rate.
However, the Labor Commission may not employ a minimum wage increase higher than the federal minimum wage set forth in the Fair Labor Standards Act.
When reviewing the minimum wage, the commission:
- May review it at any time;
- Shall review it at least every three years;
- Shall review it whenever the federal minimum wage changes.
To know more, check UT Admin. Rules 610-1-3.
Also, Utah minimum wage laws exempt all employees entitled to minimum living wage under the Fair Labor Standards Act.
Thus, because most employees in Utah are subject to the Fair Labor Standards Act, the provisions of Utah’s minimum wage law do not apply to most employees working in Utah, including those who live in Salt Lake City. For more information, check UT Statute 34-40-104(1)(a).
Tip Minimum Wage
Utah’s minimum wage for tipped employees is $2.13.
Utah minimum wage laws define a tipped employee as an employee who customarily and regularly receives tips or gratuities.
Tipped employees must receive at least $30 per month in tips before an employer may pay the tipped minimum wage.
If an employer chooses to pay employees the tipped minimum wage, it must also ensure that the employees earn the standard minimum wage when tipped wages earned are combined with tips received.
If employees are not paid the standard minimum wage when tipped wages earned are combined with tips received, the employer must pay employees the difference.
Additionally, before an employer may pay tipped employees the tipped minimum wage, it must inform them it will be doing so.
Tips received by tipped employees are the property of those employees.
Compulsory or mandatory services charges are not tips or gratuities and are part of the employer’s gross receipts, which may be allocated or distributed as the employer chooses.
If a customer pays tips by credit card, an employer may reduce the amount of tips given to the employee by the proportional amount of credit card fees attributed to the tip amount.
Learn more by checking UT Admin. Rules 610-1-4.
Tip Pooling and Sharing
Utah minimum wage laws allow employers to require tipped employees to participate in tip pooling or sharing arrangements.
Employers must inform tipped employees in writing of the terms of the tip pooling or tip sharing arrangement before the employees are required to participate in the arrangement.
A bona fide tip pooling or tip sharing arrangement may only include employees who customarily and regularly receive tips either directly or via the tip pooling or sharing arrangement.
A bona fide tip pooling or tip sharing arrangement may not include dishwashers, chefs, cooks, or janitors. See UT Admin. Rules 610-1-4(d)(f)(g) for more information.
Employees with Disabilities
Utah minimum wage laws allow employers to pay employees with disabilities a subminimum wage rate that is less than the standard minimum wage.
The Utah Labor Commission is authorized to establish and regulate the wage rate to be paid to employees with disabilities. Check the Utah Code 34-40-104(2) to know more.
Utah minimum wage laws do not permit employers to pay trainees a subminimum wage rate less than the standard minimum wage.
Utah minimum wage laws allow employers to pay apprentices a subminimum wage that is less than the standard minimum wage.
This is because Utah exempts registered apprentices from its minimum wage requirements. For more information, see Utah Code 34-40-104.
Utah minimum wage laws authorize the Utah Labor Commission to establish a wage rate for learners (for the first 160 hours of employment) that is less than the standard minimum wage. Learn more by checking the Utah Code 34-40-104(3).
Utah minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is less than the standard minimum wage.
This applies unless the student learner qualifies as a learner, as discussed above.
Utah minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage unless the full-time student qualifies as a learner as discussed above.
Utah Minimum Wage Laws 2022 FAQs
Below are additional pieces of information regarding minimum wage laws in Utah.
Is there a specific Utah minimum wage law for younger employees?
Yes. Those under the age of 20, including college students, are allowed to have an hourly rate of $4.25 covering the first three months or approximately 90 days of employment.
This is also called a training wage.
Are Utah employees entitled to receive overtime minimum wage?
Yes. Labor law, particularly the FLSA, has rulings on the provision of overtime pay for those qualified to have overtime hours.
Any violation by employers and any form of a dispute over wages can be filed through the U.S. Department of Labor.
Note that there is no overtime pay limit according to Utah minimum wage regulations.
In addition, aside from the base wage, getting overtime pay can contribute to the average wage computation as well as significantly impact a worker’s standard of living.
Are there critical labor shortage issues in Utah at the moment?
Yes. These challenges continue to worry more than two-thirds of Utahns.
In fact, according to the U.S. Bureau of Labor Statistics, last year’s unemployment rate for Utah is at 2.4%, second in the entire nation.
This challenge is sought to be addressed by private employers and larger employers, especially for low-wage workers who need jobs.
Are minors in Utah allowed to be part of the state’s minimum wage workers?
Yes, provided that they are not under the age of 14. As stipulated in the Utah Child Labor Law, this is for the minor’s education, safety, and health.
Work permits for minors are no longer required for those who are already 14 and 15.
This development of minors provides good employment opportunities and also helps the broader economy.
Minors in Utah can work in establishments like fast food and retail stores and service stations like gas stations.
They can also take on janitorial jobs or delivery work for a private company.
Note that they are not allowed to work during school hours. On a school day, they can’t work beyond three hours. The threshold is 18 hours per week.
Those are all the FAQs! For other questions about employers’ compliance regarding minimum wage, it is best to seek legal advice from any tax professional or tax attorney.