Utah Wage Payment Laws | UT Employment And Labor Laws

Frequency of Wage Payments

An employer must pay its employees, except yearly salaried employees, no less frequently than semi-monthly (twice per month) on pay days designated in advance by the employer.

An employer must pay its non-yearly-salaried employees within ten (10) days after the end of a pay period.

If a pay day falls on a Saturday, Sunday, or legal holiday, the employer must pay its employees on the day preceding those days.

An employer may pay a yearly-salaried employee once per month. If paying once per month, the employer must pay its yearly-salaried employees on or before the 7th day following the month in which the wages were earned.

UT Statute 34-28-3

Manner of Wage Payments

An employer may pay its employees by:

cash,
check (so long as the employee has means to cash the check at full face value),
by direct deposit to a financial institution designated by the employee,
payroll card.

UT Statute 34-28-3; UT Admin. Code R610-3-22

Direct Deposit

An employer may pay an employee by direct deposit. An employee may, upon filing a written request to the employer, refuse to have his or her wages directly deposited, unless:

for the calendar year preceding the pay period for which the employee is being paid, the employer’s federal employment tax deposits are equal or greater than $250,000, or
at least two-thirds of the employees of the employer are paid by direct deposit.

UT Statute 34-28-3

Payroll Card

Utah labor laws allows employers to pay employees by payroll card if the following conditions are met:

With one use, the employee shall be able to withdraw the full amount of earned wages without incurring a fee. “One use” means a single transaction
The full amount of wages for a pay period shall be available for the employee via the pay card on the applicable payday.
On each payday, the employer shall provide the employee a statement of deductions from the employee’s gross wages for the subject pay period. This statement shall be provided:
- in writing, or
- electronically, provided that the employee must be able to easily and immediately access the information and print a paper copy of the same, without cost

UT Admin. Code 610-3-22

Payment upon Separation from Employment

Employees who are fired, discharged, terminated, or laid off

Utah labor laws require employers to pay employees who are terminated or laid off from employment their unpaid wages with 24 hours after the time of separation. An employer meets the 24-hour time frame if:

Either
- it mails the wages to the employee and
- the envelope that contains the wages is postmarked with a date that is no more than one day after the day on which the employer separates the employee from the employer’s payroll
Or
- within 24 hours after the employer separates the employee from the employer’s payroll, the employer:
  - initiates a direct deposit of the wages into the employee’s account; or
  - hand delivers the wages to the employee.

If an employer fails to pay wages due an employee within 24 hours after the employee has provided a written demand, the employer is required to continue to pay the employee wages from the date of demand until paid, up to sixty (60) days, at the same rate that the employee received at the time of separation. An employee may recover the owed wages by pursuing a civil action within 60 days from the date of separation.

An employee who has not made a written demand for payment is not entitled to any penalty under this Subsection (1)(c).

The time frame for paying wages at time of separation set forth above does not apply to sales agent employed in whole or in part on a commission basis who has custody of accounts, money, or goods of the sales agent’s principal if the net amount due the agent is determined only after an audit or verification of sales, accounts, funds, or stocks.

UT Statute 34-28-5

Employees who quit or resign

If an employee resigns their job with an employer and does not have a written contract for a definite period, the employer must pay the employee their unpaid wages and any deposit held by the employer and properly belonging to the resigned employee by the next regular payday. UT Statute 34-28-5

Employees who are suspended or resigns due to a labor dispute (strike)

When an employee leaves employment with an employer due to a labor dispute, the employer must pay the employee all wages due on the next regular payday. UT Statute 34-28-5

Wages in Dispute

In case of a dispute over wages between an employer and employee, the employer shall give written notice to the employee of the amount of wages which he concedes to be due and shall timely pay such amount without condition. The acceptance by the employee of the payment of wages conceded to be due does not constitute a release as to the balance of his claim. UT Statute 34-28-6

Deductions from Wages

An employer may deduct from an employee’s wages the following so long as the deduction meets the specified criteria listed below:

cash shortages
breakage, damage, or loss of the employer’s property
purchase of required uniforms or clothing
required tools
other items necessary for employment

An employer may not withhold or deduct any part of an employee’s wages, unless:

permitted or required to do so by court order, state law, or federal law.
the employee consents in writing,
the employer presents evidence that in the opinion of a hearing officer or an administrative law judge would warrant an offset, or
the employer withholds or deducts wages as a contribution to a contract or plan established by the employer pursuant to Section 401(k), 403(b), 408,408A, or 457 of the Internal Revenue Code and the employee has not affirmatively elected not have the deduction. An employer must notify its employees of their right not to participate in such a plan.

An employer may deduct the following items from wages due an employee:

Sums deducted from wages pursuant to the Internal Revenue Code or other Federal tax provision;
Sums deducted from wages pursuant to the Social Security Administration Act and Federal Insurance Contribution Act;
Sums deducted from wages pursuant to any Utah city, county, or state tax;
Sums deducted from wages as dues, contributions, or other fees to a labor, employee, professional, or other employer-related organization or association; and sums as contributions for an employee’s participation or eligibility in a health, welfare, insurance, retirement, or other benefit plan or program, provided that the:
- Employee has granted written authorization for the deductions; and
- Deductions shall terminate upon the written revocation of the authorization;
Sums deducted from wages as payments, repayments, contributions, deposits, to a credit union, banking, savings, loan, trust or other financial institution, provided that the:
- Employee has granted written authorization for the deductions; and
- Deductions shall terminate upon the written revocation of the authorization;
Sums deducted from wages as payment for the purchase of goods or services by the employee from the employer, provided that the:
- Employee has actual or constructive possession of the goods or services purchased; and
- Employee’s purchase is evidenced by the employee’s written acknowledgment;
Sums deducted from wages for damages suffered by the employer due to the employee’s negligence:
- A deduction for damages suffered by shall meet the following pre-conditions:
  - negligence and damages arise out of the course of employment;
  - employer has not received payments, compensation, or any form of restitution for the same monetary loss from an insurer, assurer, surety, or guarantor to cover the injuries, losses, or damages;
  - offset is reasonably related to the amount of the damage; and
  - damage is over and above wear and tear reasonably expected in the normal course of business.
- Methods of determining an employee’s negligence and amount of damage are:
  - by a judicial proceeding;
  - by an employer’s written and published procedures coupled with an employee’s express authorization for the deduction in writing; or
  - by any other provision allowed or required by law pursuant to Section 34-28-3(5).
Sums deducted from wages, in the proper amounts, for enforcement of a valid attachment or garnishment shall be honored by the Division;
Sums deducted from wages as repayment to the employer by the employee of advances or loans made to the employee by the employer, provided that the:
- Advance or loan to the employee occurred while the employee was in the employ of the employer; and
- Employee’s receipt of the advance or loan is evidenced by the employee’s written acknowledgment;
Sums deducted from wages as a result of loss or damage occurring from the criminal conduct of the employee against the property of the employer, provided that:
- The employee has been adjudged guilty by a judicial proceeding of the specified crime committed against the property of the employer;
- The crime occurred during the employment relationship or out of the employment relationship; and
- The property of the employer cannot or has not been reunited with the employer; or
- The employee willfully and through his own admission did in fact destroy company property. An offset against the earned wages may be allowed at the hearing officer’s discretion.
Sums deducted from the wages resulting from cash shortages, provided that the:
- Employee gives written acknowledgment upon beginning employment that he or she shall be responsible for shortages;
- Employee shall at the beginning of his or her work period be checked in or verified on the register or with the cash amount by the employer in the employee’s presence and give written acknowledgment of the verification;
- Employee at the end of the work period be checked out or verified on the register or with the cash amount by the employer in the employee’s presence and give written acknowledgment of the verification; and
- Employee is the sole and absolute user and has sole access to the register or cash amount from the time checked in under Subsection (2) until the time checked out under Subsection (3);
Sums deducted from wages as payment for the purchase of goods, tools, equipment, or other items required for the employment of a person, provided that the:
- Employee’s purchase and receipt of the items is evidenced by a written acknowledgment;
- Employee has actual or constructive possession of the goods or items; and
- Employer repurchases the items from the employee at the employee’s option upon the termination of employment at a fair and reasonable price;
Sums deducted from wages as payment for goods, tools, equipment, or other items furnished and assigned to the employee by the employer, provided that:
- The item was assigned during the employment of the employee;
- The employee gave written acknowledgment of the receipt of the item; and
- The item was not returned to the employer upon termination.

UT Statute 34-28-3; UT Admin. Code 610-3-18

Uniforms, Tools, and Other Equipment Necessary for Employment

Utah does not have any laws prohibiting an employer from requiring an employee to purchase a uniform, tools, or other items necessary for employment.

Pre-hire Medical, Physical, or Drug Tests

An employer may not require an employee or applicant to pay for any physical examination required as a condition of employment. UT Statute 34-33-1

Notice of Wage Reduction

An employer must notify an employee before changing their wage rate. An employer may give the notice by posting these facts and keeping them posted conspicuously at or near the place of work where such posted notice can be seen by each employee as he comes or goes to his place of work. UT Statute 34-28-4

Statement of Wages (Pay Stub)

An employer must, on each regular payday, furnish the employee with a statement showing the total amount of each deduction. UT Statute 34-28-3; UT Admin. Code 610-3-20

An employer licensed under UT Statute 58-55 must on the day on which the employer pays an employee, give the employee a written or electronic pay statement that states:

the employee’s name
the employee’s base rate of pay
the dates of the pay period for which the individual is being paid
if paid hourly, the number of hours the employee worked during the pay period
the amount of and reason for any money withheld in accordance with state or federal law, including:
- state and federal income tax
- Social Security tax
- medicare tax
- court-ordered withholdings
the total amount paid to the employee for that pay period

UT Statute 34-28-3

Record Keeping Requirements

An employer must keep for a minimum of three (3) years payroll records of employees subject to minimum wage laws showing:

names, addresses, and dates of birth,
hours worked and
wages paid to all covered employees.

UT Statute 34-40-201

An employer must keep for at least one (1) year a true and accurate record of time worked and wages paid each pay period to each employee who is employed on an hourly or a daily basis. UT Statute 34-28-10

Notice Requirements

An employer must notify its employees at the time of hire of the day and place of payment and of the rate of pay. An employer must notify an employee of any change with respect to any of these items prior to the time of the change. An employer may give the notice by posting these facts and keeping them posted conspicuously at or near the place of work where such posted notice can be seen by each employee as he comes or goes to his place of work. UT Statute 34-28-4