Utah 2023 Regular Session

Utah House Bill HB0549 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	H.B. 549
2	2	LEGISLATIVE GENERAL COUNSEL
3	3	6 Approved for Filing: E.A. Evans 6
4	4	6 02-22-23 12:41 PM 6
5	5	H.B. 549
6	6	1 MINIMUM WAGE MODIFICATIONS
7	7	2 2023 GENERAL SESSION
8	8	3 STATE OF UTAH
9	9	4 Chief Sponsor: Brett Garner
10	10	5 Senate Sponsor: ____________
11	11	6
12	12	7LONG TITLE
13	13	8General Description:
14	14	9 This bill addresses the minimum wage.
15	15	10Highlighted Provisions:
16	16	11 This bill:
17	17	12 <defines terms;
18	18	13 <repeals provisions allowing an employee who is a minor or who has a disability to
19	19	14earn less than the minimum wage;
20	20	15 <adjusts the minimum wage;
21	21	16 <requires the Labor Commission to adjust the minimum wage at certain times;
22	22	17 <grants administrative rulemaking authority; and
23	23	18 <makes technical and conforming changes.
24	24	19Money Appropriated in this Bill:
25	25	20 None
26	26	21Other Special Clauses:
27	27	22 None
28	28	23Utah Code Sections Affected:
29	29	24AMENDS:
30	30	25 34-23-301, as last amended by Laws of Utah 1997, Chapter 375
31	31	26 34-40-102, as last amended by Laws of Utah 2016, Chapter 370
32	32	27 34-40-103, as last amended by Laws of Utah 1997, Chapter 375
33	33	HB0549 H.B. 549 02-22-23 12:41 PM
34	34	- 2 -
35	35	28 34-40-104, as last amended by Laws of Utah 2008, Chapter 382
36	36	29 34-40-106, as last amended by Laws of Utah 2005, Chapter 287
37	37	30
38	38	31Be it enacted by the Legislature of the state of Utah:
39	39	32 Section 1. Section 34-23-301 is amended to read:
40	40	33 34-23-301. Minimum hourly wages.
41	41	34 The commission may establish minimum hourly wages for minors[. If there is an
42	42	35established minimum hourly wage for adults, the minimum hourly wages for minors may be
43	43	36established at a lesser amount.] in accordance with Section 34-40-103.
44	44	37 Section 2. Section 34-40-102 is amended to read:
45	45	38 34-40-102. Definitions -- Joint employees -- Franchisors.
46	46	39 (1) Subject to Subsection (3), this chapter and the terms used in [it] this chapter,
47	47	40including the computation of wages, shall be interpreted consistently with the Fair Labor
48	48	41Standards Act of 1938, 29 U.S.C. Sec. 201 et seq., as amended, to the extent that act relates to
49	49	42the payment of a minimum wage.
50	50	43 (2) As used in this chapter:
51	51	44 (a) "Adjust for inflation" means increase or decrease in accordance with the seasonally
52	52	45adjusted consumer price index for all urban consumers published by the Bureau of Labor
53	53	46Statistics within the United States Department of Labor.
54	54	47 (b) "Cash wage obligation" means an hourly wage that an employer pays a tipped
55	55	48employee regardless of the tips or gratuities a tipped employee receives.
56	56	49 [(b)] (c) "Commission" means the Labor Commission.
57	57	50 [(c)] (d) "Division" means the Division of Antidiscrimination and Labor in the
58	58	51commission.
59	59	52 [(d)] (e) "Federal executive agency" means an executive agency, as defined in 5 U.S.C.
60	60	53Sec. 105, of the federal government.
61	61	54 [(e)] (f) "Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
62	62	55 [(f)] (g) "Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
63	63	56 [(g)] (h) "Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
64	64	57 [(h)] (i) "Minimum wage" means the state minimum hourly wage for adult employees
65	65	58as established under this chapter, unless the context clearly indicates otherwise. 02-22-23 12:41 PM H.B. 549
66	66	- 3 -
67	67	59 [(i)] (j) "Tipped employee" means an employee who customarily and regularly receives
68	68	60tips or gratuities.
69	69	61 (3) Notwithstanding Subsection (1), for purposes of determining whether two or more
70	70	62persons are considered joint employers under this chapter, an administrative ruling of a federal
71	71	63executive agency may not be considered a generally applicable law unless that administrative
72	72	64ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.
73	73	65 (4) (a) For purposes of this chapter, a franchisor is not considered to be an employer of:
74	74	66 (i) a franchisee; or
75	75	67 (ii) a franchisee's employee.
76	76	68 (b) With respect to a specific claim for relief under this chapter made by a franchisee or
77	77	69a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise
78	78	70that exercises a type or degree of control over the franchisee or the franchisee's employee not
79	79	71customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks
80	80	72and brand.
81	81	73 Section 3. Section 34-40-103 is amended to read:
82	82	74 34-40-103. Minimum wage -- Commission to review and modify minimum wage.
83	83	75 (1) (a) The minimum wage for all private and public employees within the state shall
84	84	76be $3.35 per hour.
85	85	77 (b) Effective April 1, 1990, the minimum wage shall be $3.80 per hour.
86	86	78 (c) Effective December 31, 2023, the minimum wage shall be $7.25 per hour.
87	87	79 (d) Effective January 1, 2025, the minimum wage shall be:
88	88	80 (i) for an employee who is younger than 18 years old, $10 per hour;
89	89	81 (ii) for an employee who is 18 years old or older and younger than 21 years old, $13
90	90	82per hour;
91	91	83 (iii) for an employee who is 21 years old or older and younger than 23 years old, $15
92	92	84per hour; and
93	93	85 (iv) for an employee who is 23 years old or older, $19 per hour.
94	94	86 (e) Beginning January 1, 2027, and each January 1 thereafter, the commission shall, by
95	95	87rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
96	96	88 (i) adjust for inflation the minimum wages described in Subsection (1)(d) for the
97	97	89immediately preceding two-year period; and H.B. 549 02-22-23 12:41 PM
98	98	- 4 -
99	99	90 (ii) subject to Subsection (2)(a), establish a minimum wage for each category of
100	100	91employee described in Subsection (1)(d) that is equal to or greater than the adjusted amount for
101	101	92the category determined under Subsection (1)(e)(i).
102	102	93 [(2) (a) After July 1, 1990, the commission may by rule establish the minimum wage or
103	103	94wages as provided in this chapter that may be paid to employees in public and private
104	104	95employment within the state.]
105	105	96 [(b)] (2) (a) The minimum wage, as established by the commission, may not [exceed
106	106	97the] at any time be lower than the federal minimum wage as provided in 29 U.S.C. Sec. 201 et
107	107	98seq., the Fair Labor Standards Act of 1938[, as amended, in effect at the time of
108	108	99implementation of this section].
109	109	100 [(c)] (b) The commission:
110	110	101 (i) may review the minimum wage at any time;
111	111	102 [(ii) shall review the minimum wage at least every three years; and]
112	112	103 [(iii)] (ii) shall review the minimum wage whenever the federal minimum wage is
113	113	104changed[.];
114	114	105 (iii) may, by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
115	115	106Rulemaking Act:
116	116	107 (A) adjust for inflation the minimum wages described in Subsection (1)(d) more often
117	117	108than is required under Subsection (1)(e); and
118	118	109 (B) subject to Subsection (2)(a), establish a minimum wage for a category of employee
119	119	110described in Subsection (1)(d) that is equal to or greater than the adjusted amount determined
120	120	111for the category under Subsection (2)(b)(iii)(A).
121	121	112 [(3) The commission may provide for separate minimum hourly wages for minors.]
122	122	113 Section 4. Section 34-40-104 is amended to read:
123	123	114 34-40-104. Exemptions.
124	124	115 (1) The minimum wage established in this chapter does not apply to:
125	125	116 (a) any employee who is entitled to a minimum wage as provided in 29 U.S.C. Sec.
126	126	117201 et seq., the Fair Labor Standards Act of 1938, as amended;
127	127	118 (b) outside sales persons;
128	128	119 (c) an employee who is a member of the employer's immediate family;
129	129	120 [(d) companionship service for persons who, because of age or infirmity, are unable to 02-22-23 12:41 PM H.B. 549
130	130	- 5 -
131	131	121care for themselves;]
132	132	122 [(e)] (d) casual and domestic employees as defined by the commission;
133	133	123 [(f)] (e) seasonal employees of nonprofit camping programs, religious or recreation
134	134	124programs, and nonprofit educational and charitable organizations registered under Title 13,
135	135	125Chapter 22, Charitable Solicitations Act;
136	136	126 [(g)] (f) an individual employed by the United States of America;
137	137	127 [(h)] (g) any prisoner employed through the penal system;
138	138	128 [(i)] (h) any employee employed in agriculture if the employee:
139	139	129 (i) is principally engaged in the range production of livestock;
140	140	130 (ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
141	141	131that has been and is generally recognized by custom as having been paid on a piece rate basis in
142	142	132the region of employment;
143	143	133 (iii) was employed in agriculture less than 13 weeks during the preceding calendar
144	144	134year; or
145	145	135 (iv) is a retired or semiretired person performing part-time or incidental work as a
146	146	136condition of the employee's residence on a farm or ranch;
147	147	137 [(j)] (i) registered apprentices or students employed by the educational institution in
148	148	138which they are enrolled; or
149	149	139 [(k)] (j) any seasonal hourly employee employed by a seasonal amusement
150	150	140establishment with permanent structures and facilities if the other direct monetary
151	151	141compensation from tips, incentives, commissions, end-of-season bonus, or other forms of pay
152	152	142is sufficient to cause the average hourly rate of total compensation for the season of seasonal
153	153	143hourly employees who continue to work to the end of the operating season to equal the
154	154	144applicable minimum wage if the seasonal amusement establishment:
155	155	145 (i) does not operate for more than seven months in any calendar year; or
156	156	146 (ii) during the preceding calendar year its average receipts for any six months of that
157	157	147year were not more than 33-1/3% of its average receipts for the other six months of that year.
158	158	148 [(2) (a) Persons with a disability whose earnings or productive capacities are impaired
159	159	149by age, physical or mental deficiencies, or injury may be employed at wages that are lower than
160	160	150the minimum wage, provided the wage is related to the employee's productivity.]
161	161	151 [(b) The commission may establish and regulate the wages paid or wage scales for H.B. 549 02-22-23 12:41 PM
162	162	- 6 -
163	163	152persons with a disability.]
164	164	153 [(3)] (2) The commission may establish or may set a lesser minimum wage for learners
165	165	154not to exceed the first 160 hours of employment.
166	166	155 [(4)] (3) (a) An employer of a tipped employee shall pay the tipped employee at least
167	167	156the minimum wage established by this chapter.
168	168	157 (b) In computing a tipped employee's wage under this Subsection [(4)] (3), an employer
169	169	158of a tipped employee:
170	170	159 (i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
171	171	160and
172	172	161 (ii) may compute the remainder of the tipped employee's wage using the tips or
173	173	162gratuities the tipped employee actually receives.
174	174	163 (c) An employee shall retain all tips and gratuities except to the extent that the
175	175	164employee participates in a bona fide tip pooling or sharing arrangement with other tipped
176	176	165employees.
177	177	166 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
178	178	167commission shall by rule establish the cash wage obligation in conjunction with its review of
179	179	168the minimum wage under Section 34-40-103.
180	180	169 Section 5. Section 34-40-106 is amended to read:
181	181	170 34-40-106. Limitations on minimum wage imposed by cities, towns, or counties.
182	182	171 (1) A city, town, or county may not establish, mandate, or require a minimum wage
183	183	172that exceeds [the federal minimum wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor
184	184	173Standards Act of 1938] the established minimum wage for all private and public employees
185	185	174under Section 34-40-103.
186	186	175 (2) (a) A city, town, or county may not require that a person who contracts with the
187	187	176city, town, or county pay that person's employees a wage that exceeds the federal minimum
188	188	177wage as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938.
189	189	178 (b) Subsection (2)(a) does not apply when federal law requires the payment of a
190	190	179specified wage to persons working on projects funded in whole or in part by federal funds.
191	191	180 (c) Subsection (2)(a) applies to contracts executed on or after April 30, 2001.
192	192	181 (3) (a) If a city, town, or county contracts with a person for the direct purchase of goods
193	193	182or services, in awarding or otherwise executing that contract, the city, town, or county may not 02-22-23 12:41 PM H.B. 549
194	194	- 7 -
195	195	183give any preferential treatment to a person on the basis that the person pays that person's
196	196	184employees a wage that exceeds the minimum wage as provided in 29 U.S.C. 201 et seq., Fair
197	197	185Labor Standards Act of 1938.
198	198	186 (b) This Subsection (3) does not apply when federal law requires the consideration of
199	199	187whether a person pays the person's employees a specified wage to persons working on projects
200	200	188funded in whole or in part by federal funds.
201	201	189 (c) This Subsection (3) applies to contracts executed on or after May 2, 2005.
202	202	190 (4) (a) The restrictions of this section on a city, town, or county apply to any entity
203	203	191created by the city, town, or county.
204	204	192 (b) This Subsection (4) applies to contracts executed on or after May 2, 2005.