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Utah Adopts Third Hike in Federal Minimum Wage Law
The
Utah Labor Commission announced its intentions to adopt the new federal
minimum wage law which will become effective July 24, 2009. The federal
and Utah minimum wage rate was increased in 2007 for the first time in
10 years. In July of 2007, the rate went from $5.15 an hour to $5.85.
Then, on July 24, 2008, the second of three scheduled 70 cent hikes
became effective raising Utah’s minimum wage to $6.55 per hour. Effective July 24, 2009, the rate will move to the third scheduled increase to a rate of $7.25 per hour.“Utah
statute requires the Labor Commission to review the state minimum wage
law whenever a change occurs in the federal minimum wage law”,
said Commissioner Sherrie Hayashi. “Because of this mandate and
the federal minimum wage law, the Commission promulgated changes to the
Utah minimum wage rules through the state administrative rule-making
process in 2007. Utah will continue following the pay scale set forth by the federal legislation.” The minimum wage rate changes are summarized in the chart below:
MINIMUM WAGE RATE INCREASES | FEDERAL | UTAH | Rate | Effective Date | Rate | Effective Date | $5.85 / Hour | July 24, 2007 | $5.85 / Hour | Sept. 8, 2007 | $6.55 / Hour | July 24, 2008 | $6.55 / Hour | July 24, 2008 | $7.25 / Hour | July 24, 2009 | $7.25 / Hour | July 24, 2009 |
The
new federal and Utah minimum wage laws leave unaffected the cash wage
obligation of $2.13 an hour that is owed to tipped employees and the
training wage rate of $4.25 an hour for minor employees during their
first 90 days of employment with a single employer. A
“tipped employee” is one who customarily and regularly
receives tips, who is not a chef, janitor or dishwasher, and who
receives at least $30.00 a month in tips. The new
Utah minimum wage rates will apply to a tipped employee’s wages
where the employer is permitted to credit the employee’s tips
toward the effective minimum wage rate after paying the employee the
cash wage obligation of $2.13 an hour. If the cash
wage obligation, plus tips, falls short of the minimum wage level over
a pay period, the employer must pay the difference. Employers
may choose to pay more than $4.25 an hour to minor employees during
their first 90 days of employment, but after the 90 days, minor
employees are entitled to be paid wages at the new minimum wage rates.
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