02-21 12:02 2nd Sub. (Gray) H.B. 186
Kay J. Christofferson proposes the following substitute bill:
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Wage Payment Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kay J. Christofferson
Senate Sponsor: Heidi Balderree
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LONG TITLE
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General Description:
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This bill modifies the payment of wages provisions.
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Highlighted Provisions:
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This bill:
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▸ removes references that require an employee separating from an employer to provide a
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written demand for payment;
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▸ removes the requirement that an employee make a demand in writing 15 days before
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bringing a suit for wages;
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▸ requires that an employee, who disputes the amount an employer pays to the employee
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upon separation, provide notice to the employer before initiating a legal action; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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34-27-1, as last amended by Laws of Utah 2024, Chapter 365
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34-28-5, as last amended by Laws of Utah 2018, Chapter 307
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 34-27-1 is amended to read:
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34-27-1 . Reasonable amount -- Taxed as costs.
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[Whenever a mechanic, artisan, miner, laborer, servant, or other employee shall have
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cause to bring suit for wages earned and due according to the terms of that individual's
2nd Sub. H.B. 186 2nd Sub. (Gray) H.B. 186 02-21 12:02
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employment and shall establish by the decision of the court that the amount for which the
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plaintiff has brought suit is justly due, and that a demand has been made in writing at least 15
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days before suit was brought for a sum not to exceed the amount so found due, then it shall be
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the duty of the court before which the case shall be tried to allow to the plaintiff a reasonable
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attorneys' fee in addition to the amount found due for wages, to be taxed as costs of suit.] If a
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mechanic, artisan, miner, laborer, servant, or other employee has cause to bring suit for wages
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according to the terms of that individual's employment, and is awarded wages in a court with
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jurisdiction, the court shall:
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(1) establish the amount that the plaintiff is due; and
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(2) award attorney fees Ĥ→ [, to be taxed as costs of suit] ←Ĥ .
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Section 2. Section 34-28-5 is amended to read:
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34-28-5 . Separation from payroll -- Resignation -- Cessation because of
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industrial dispute.
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(1)(a) When an employer separates an employee from the employer's payroll:
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(i) the unpaid wages of the employee become due immediately[,] ; and
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(ii) the employer shall pay the wages to the employee within [24 hours] three business
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days of the time of separation at the specified place of payment.
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(b) An employer satisfies the [24-hour] three business days time requirement described
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in Subsection (1)(a) if:
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(i)(A) the employer mails the wages to the employee; and
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(B) the envelope that contains the wages is postmarked with a date that is no more
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than one day after the day on which the employer separates the employee from
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the employer's payroll; or
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(ii) within [24 hours] three business days after the employer separates the employee
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from the employer's payroll, the employer:
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(A) initiates a direct deposit of the wages into the employee's account; or
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(B) hand delivers the wages to the employee.
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(c)(i) In case of failure to pay wages due an employee within [24 hours of written
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demand,] three business days, the wages of the employee shall continue, at the
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same rate that the employee received at the time of separation, from the date of [
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demand until paid, but in no event to exceed 60 days, at the same rate that the
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employee received at the time of separation.] separation until the earlier of:
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(A) the date of payment; or
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(B) 60 days after the date of separation.
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(ii) The employee may recover the penalty [thus ]accruing to the employee in a civil
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action.
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(iii) When an employer pays the owed wages and the employee disputes the amount,
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the employee shall:
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(A) give written notice to the employer; and
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(B) allow the employer three business days to respond before the employee may
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initiate legal action.
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(iv) [This action shall be commenced ] The employee shall commence an action to
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recover the penalty within 60 days from the later of:
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(A) [within 60 days from ]the date the employee exhausts the employee's
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administrative remedies described in Section 34-28-9 and rules made by the
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commission under Section 34-28-9, if the employee filed a wage claim with the
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division; or
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(B) the date of separation.
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[(iii) An employee who has not made a written demand for payment is not entitled to
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any penalty under this Subsection (1)(c).]
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(2) If an employee[ ] does not have a written contract for a definite period and resigns[ ] the
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employee's employment, the wages earned and unpaid together with any deposit held by
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the employer and properly belonging to the resigned employee for the performance of
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the employee's employment duties become due and payable on the next regular payday.
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(3) If work ceases as the result of an industrial dispute, the wages earned and unpaid at the
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time of this cessation become due and payable at the next regular payday, as provided in
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Section 34-28-3, including[,] :
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(a) [without abatement or reduction, ]all amounts due [all persons whose work has been
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suspended as a result of the industrial dispute, together with] without abatement or
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reduction; and
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(b) any deposit or other guaranty held by the employer for the faithful performance of
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the duties of the employment.
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(4) For a sales agent employed in whole or in part on a commission basis who has custody
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of accounts, money, or goods of the sales agent's principal, this section does not apply to
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the commission-based portion of the sales agent's earnings if the net amount due the
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agent is determined only after an audit or verification of sales, accounts, funds, or stocks.
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Section 3. Effective Date.
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This bill takes effect on May 7, 2025.
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