Introduction to employment laws in Utah
Overview
Utah’s labor laws provide essential protections for employees in key areas such as minimum wage, workplace safety, and anti-discrimination. Employers hiring in the state must understand and comply with a patchwork of federal and state laws.
In this guide, we’ll help you to stay compliant while hiring and manage employees in Utah.
Employing in Utah: Key employment laws and practices
Standard work hours
In Utah, full-time employment usually constitutes between 30 and 40 hours per week. This is not legally defined but has become a general standard followed by employers.
Businesses need to be aware that while they have the flexibility to set work hours for their employees, any violation of state or federal laws on overtime could lead to legal action.
For contractual or self-employed professionals, the terms of their contracts typically dictate their hours of work. It is essential to ensure these contracts are compliant with Utah’s labor laws.
Minimum wage and overtime
In line with the federal standard, Utah’s current minimum wage stands at $7.25 per hour. The state allows a training minimum wage of $4.25 per hour to be paid to minor employees for their first 90 days of employment. Businesses need to be mindful of maintaining this minimum standard across their workforce.
Regarding overtime, non-exempt employees in Utah are entitled to 1.5 times their regular pay rate for hours worked beyond 40 in a week, as detailed in the federal Fair Labor Standards Act (FLSA).
There are exemptions for certain employees earning more than the state salary threshold of $684 per week or those in executive, managerial, or professional roles.
Insurance and benefits
Utah employers must adhere to federal regulations for providing insurance and benefits to their employees. This includes compliance with the Affordable Care Act (ACA) for health insurance and ERISA standards for retirement benefits.
State-specific stipulations also apply. For instance, an employer’s contribution toward unemployment insurance varies between 0.3% and 7.3% depending on their industry average and on a taxable wage base of $47,000.
Employers are required to contribute 6.2% towards Social Security and 1.45% towards Medicare as part of their FICA obligations. All employers in the state of Utah are required to carry workers’ compensation insurance. Sole proprietors are exempted from this rule.
Tax type | Contribution |
Unemployment insurance | 0.30% – 7.30% |
FICA Social Security | 6.20% |
FICA Medicare | 1.45% |
FUTA tax | 0.60% – 6.00% |
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Meal and rest periods
Utah’s labor laws do not specifically stipulate mandatory breaks or meal periods for workers 18 years of age and older. Workers under the age of 18 must receive at least 30 minutes for lunch no later than five hours into the workday and a 10-minute rest break for every four hours worked. They may not work more than three consecutive hours without a 10-minute break.
Employers in Utah and elsewhere in the United States commonly implement break policies in line with the federal Fair Labor Standards Act (FLSA). This federal law does not mandate breaks but recommends that employers provide brief rest periods of about five to 20 minutes as part of an employee’s work hours. For meal periods, the FLSA suggests a minimum 30-minute break that is not considered part of the workday.
If employers in Utah choose to provide these breaks, they must ensure consistent application across all employees to avoid potential claims of discrimination.
Anti-discrimination laws
Utah employment laws offer comprehensive protection against workplace discrimination. The Utah Anti-discrimination Act prohibits discrimination based on race, color, religion, sex, age (40 and above), national origin, disability, sexual orientation, or gender identity. These protections extend beyond federal guidelines by including sexual orientation and gender identity as protected classes.
Failing to comply with these anti-discrimination laws can result in severe penalties including monetary damages and injunctive relief.
Leave policies
In Utah, there are various types of leave that employers may need to consider, though not all are legally mandated. Employers have the discretion to offer paid or unpaid vacation leave, dictated by company policy or the terms of an employment contract.
Sick leave policies are also at the employer’s discretion, except in cases covered by the Family and Medical Leave Act (FMLA). The FMLA requires employers to provide up to 12 weeks of unpaid, job-protected leave for eligible employees dealing with serious health conditions, pregnancy, or caring for a newborn or adopted child.
Parental leave falls under the FMLA protections, allowing new parents to take time off for birth, adoption, or foster care placement of a child. Bereavement leave isn’t mandated by Utah laws.
Jury duty leave is protected under Utah law. Employers must provide unpaid time off for employees summoned to serve as jurors. Military leave is federally protected under the Uniformed Services Employment and Reemployment Rights Act (USERRA). This law ensures job protection and rights of reinstatement for individuals who voluntarily or involuntarily leave employment for military service.
Leave type | Details |
Vacation leave | Not mandated by state law |
Sick leave | Not mandated by state law; FMLA protections apply in specific cases |
Parental and maternity leave | Protected under FMLA |
Bereavement leave | Not mandated by state law |
Jury duty leave | Legally protected; employers must provide unpaid time off |
Witness leave | Legally protected; employers must provide paid time off |
Military leave | Federally protected under USERRA |
Easily onboard employees in Utah?
Termination laws
Utah follows the at-will employment principle where either the employer or employee can terminate the employment relationship at any time without notice or reason, except in cases where termination violates federal or state laws such as those prohibiting discrimination. Employers need to observe the Worker Adjustment and Retraining Notification Act (WARN) in cases of mass layoffs, providing a 60-day notice to affected employees.
Severance pay isn’t mandated by Utah laws. However, if an employer chooses to offer severance benefits, the terms should be clearly stated in the employment contract.
Even though formal notice isn’t required for termination, it’s a common practice for employers to request at least two weeks’ notice from employees planning to resign. This period allows for smoother transition of duties and wrap-up of pending tasks.
Safety and health
Utah employers are required to comply with federal Occupational Safety and Health Administration (OSHA) standards to maintain safe and healthy work environments. Depending on the industry, there may be additional safety regulations or guidelines. For instance, construction businesses must adhere to specific safety standards related to equipment use, hazardous materials handling, and worker training.
Employers must promptly report serious workplace injuries or illnesses to OSHA. They’re also required to maintain records of workplace injuries or illnesses, subject to certain exemptions based on the size of the business and the nature of the industry.
It’s crucial for businesses to create robust safety programs and training initiatives that go beyond minimum compliance requirements. Such proactive measures can significantly reduce workplace accidents and improve overall employee well-being.
Taxes in Utah
Employers operating in Utah have various tax obligations at both federal and state levels. These include payroll taxes for Social Security and Medicare (FICA), Federal Unemployment Tax Act (FUTA), and state unemployment insurance tax.
Employees contribute 6.20% for Social Security tax (up to $168,000 annually) and 1.45% for Medicare tax. High-income earners are additionally taxed 0.9% on earnings over $200,000. Employers match these contributions.
State income tax in Utah is a flat rate of 4.55% for both single and married taxpayers. Federal tax rates vary based on income levels and filing status.
Tax type | Details |
FICA Social Security (federal) | 6.20% (employer and employee each) up to $168,600 annually |
FICA Medicare (federal) | 1.45% (employer and employee each) |
Additional Medicare Tax | 0.90% for earnings over $200,000 |
Unemployment Insurance (state) | 0.30%-7.30% by employer on salary up to $47,000 annually |
FUTA (federal) | 0.60%-6.00% by employer on salary up to $7,000 annually |
State Income Tax | Flat rate of 4.55% |
Managing Utah employees with an Employer of Record (EOR)
Navigating the complexities of Utah employment laws and ensuring HR compliance can be daunting, especially when you’re managing team members across different states or countries.
By partnering with Multiplier, you can alleviate these challenges. As a leading Employer of Record (EOR) solution, we enable businesses to compliantly employ full-time workers in Utah without setting up a local entity.
Our global payroll platform simplifies payment processing in over 120 currencies while handling local taxes, contributions, and withholdings. We also offer global benefits administration, immigration and visa support, ESOP administration, all under one platform.
Book a demo now to discover how Multiplier can streamline your HR and compliance processes.
FAQs
Full-time employment in Utah is generally considered to be between 30 and 40 hours per week. However, this is not explicitly defined by law and may vary based on the employer’s policy or specific employment contract.
Utah follows the federal Fair Labor Standards Act (FLSA) for overtime regulations. If non-exempt employees work more than 40 hours in a week, they are entitled to overtime pay at 1.5x their regular pay rate. The salary threshold for exemption from overtime is $684 per week, which aligns with the federal minimum.
The minimum wage in Utah for private sector employees is set at the federal minimum of $7.25 per hour. This rate applies unless an employer has a higher state or local minimum wage requirement.
Employers in Utah have to make several payroll contributions. These include Unemployment Insurance (0.30%- 7.30%) applied on salary up to $47,000USD annually, FICA Social Security (6.20%) applied on salary up to $168,000 USD annually, FICA Medicare (1.45%), and the FUTA tax rate (0.60% – 6.00%) applied on salary up to $7,000 USD annually.
In Utah, workers are protected by numerous state and federal employment laws. These laws protect employees from discrimination based on age, religion, sexual orientation, gender, and race, among other factors. Moreover, the Family and Medical Leave Act (FMLA) provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.
