Employment And Labor Laws In Utah: 2025 Guide

International businesses that are looking for ways to expand their company globally can benefit a lot from employing in Utah.

The country's population is highly educated. Researchers claim that as many as 35.8%, over one-third of Utah's urban population, have a bachelor’s degree. This means increased productivity and innovation for your organization. 

Additionally, Utahns are proficient in various languages, including English, Spanish, Navajo, Chinese, and German. A multilingual workforce helps reduce the chances of miscommunication. The end result? Improved internal collaboration and employee retention.

In this article, we will discuss Utah labor laws. These include everything from employee rights in Utah, Utah labor laws salaried employees to Utah minimum wage requirements. So, let’s get started.

Overview of Employment Laws in Utah

Utah has various labor laws to guide the employee-employer relationship. Interpreting or even complying with these different regulations can sometimes be confusing or challenging. 

To make things easier for you, we have highlighted some of the most significant Utah employment laws below.

• The Utah Payment of Wages Act: Lists various regulations related to the manner/time by which employers compensate their employees.
• Utah Employment of Minors Act: This act deals with various terms and conditions related to the employment of minors (under 16 years of age) in the country. These include working hours, compensation amount, job location, and so on.
• Utah Antidiscrimination Act: This is the main law that prohibits any form of employment-related discrimination based on race, color, sex, and gender identity. It applies to all organizations in the country, such as employment agencies, labor organizations, vocational schools, and joint apprenticeship committees.
• Utah Fair Housing Act: Under this law, landlords or HOAs are prohibited from discriminating against individuals when making housing available. 

Utah At a Glance

• Population: 3,417,734
• Currency: US dollar/USD
• Capital City: Salt Lake City
• GDP: $224.6 billion

Key Employment Laws for Utah Employers

To hire remote employees in this country, you must know Utah's labor laws various rules and regulations. A detailed overview of the same is highlighted below. 

Standard Working Hours

Under the labor laws in Utah, all full-time employees must work eight hours per day. A typical workweek consists of five days(Monday-Friday).

Minimum Wage and Overtime Requirements

According to the Fair Labor Standards Act (a federal law in the USA), the current minimum wage is $7.25 per hour. 

However, Utah also has legislation to determine the minimum wage for individuals in this state. For example, under the Minimum Wage Act, employers must pay a minor a minimum wage of $4.25 per hour. This is only applicable to the first 90 days of their employment. 

Additionally, tipped employees, including adults and minors, must receive $2.13 per hour. This is only when the tips they earn combined with their base wage equal or exceed the minimum salary in Utah.

Utah Overtime Law

Utah follows the federal overtime provisions of the FLSA. It states that employees who work more than 40 hours must be compensated with 1.5 times their regular wage. 

However, certain employees may be exempted from the overtime regulations under the FLSA. For example, if employees are compensated on a salary basis and meet certain tests regarding their job duties, they qualify for exemption from overtime pay and minimum wage.

Additionally, under Utah state laws, FLSA-exempt employees are entitled to overtime compensation, which can be earned in two ways. 

• The employer can pay their employees for the extra hours they worked at a rate equal to their regular hourly rate.
• The employee can take compensatory time off.

Employee Classification and Contracts

Utah is an employment-at-will state. This means that if there is no written employment agreement or a collective bargaining agreement, then the employee/employer can terminate the working relationship at any time. The only catch is that the reason behind this termination should not be contrary to the law. 

According to Utah’s Department of Labor, an employment agreement must be provided in writing unless the contract terms cannot be performed within one year. 

Some of the most common forms of employment contracts in Utah include,

• Permanent employment agreement: It refers to the working relationship between an employer and an employee, where the latter is hired for an indefinite period.
• Non-compete agreement: It prevents an employee from starting a new business in the same industry as their employer, which acts as a direct competitor or working for a competitor. 
• Non-disclosure agreement: It prevents employees from disclosing sensitive business information and trade secrets.

Full-time Employees vs Independent Contractors 

According to the Employment Security Act, two main factors are used to determine whether a worker is classified as an independent contractor or an employee in Utah. 

They include,

Independently established

The following points are considered when determining whether a worker is customarily engaged in an independently established business or trade.

• The individual has a place of business separate from the employer’s.
• The worker uses their tools/equipment to perform the services.
• The worker is not limited to working for one employer only.
• The worker files for self-employment and other relevant tax forms with the IRS and other agencies.
• To generate business, the worker advertises their services through various platforms (newspapers, telephone directories, magazines). 

Control and direction

The points below determine whether an employer can exercise control or direction over how the worker carries out the services.

• If the employer determines the pace or imposes an ordered sequence of duties to carry out the tasks.
• If the employer claims that the service must be performed within their premises.
• If the employer determines that the service must be performed personally and cannot be designated to others.
• If the employer sets down a specific number of work hours for the individual. 

The Utah Worker Classification Enforcement Council is the main body that deals with all instances of worker misclassification in Utah.

Payroll and Tax Obligations in Utah

When paying employees, it is important to consider the following points, as stated by Utah employment laws.

• Employees need to be paid in the state's official currency, USD.
• The pay date is either the 15th of the month or the last working day.
• If the pay date falls on a weekend (Saturday/Sunday) or on a legal holiday, compensation must be provided on the previous business day.
• The date of payment will be different if an employee receives compensation/salary on a yearly basis. It must be made on or before the seventh of the month following the month for which services were rendered.

Employer Contribution 

State of Utah Benefits and Insurance Requirements

Employees in Utah are eligible for basic healthcare plans, which include three medical plans, five dental plans, and four vision plans. It is provided by the PEHP Health and Benefits, a division of the Utah Retirement Systems(URS). 

Retirement and financial wellness benefits in Utah include,

• 401k Match: Eligible employees are automatically enrolled in the 401(k) matching plan with a personal contribution of $26 per pay period.
• Tier 1: It is a pension plan for employees hired before July 1, 2011, and who have service credit with an employer covered by URS.
• Tier 2: This plan is for employees hired after July 1, 2011. The employer must contribute an amount that matches 10-16.59% of the employee’s salary between the above-mentioned plans. 

Other core benefits for employees in Utah are,

• Long-term disability: Employees suffering from a medically verifiable disability are eligible for this state-paid benefit.
• Life insurance: The state of Utah provides basic term life insurance worth $25,000.

Voluntary benefits and discount programs in Utah comprise the following,

• Short-term disability: If an employee cannot work due to non-occupational disease or injury, a portion of their salary is provided under this benefit.
• Accidental death and dismemberment insurance: It provides benefits for death or if any worker suffers from loss of use of limbs, speech, eyesight, or hearing due to an accident. 
• Employee discount programs: Utah employees enjoy special discounts on products/services from various vendors. However, these can change frequently. 

Workers’ Compensation and Liability

Utah's no-fault insurance system provides medical and disability benefits to all employees if they suffer injury or illness due to work.

Work Break Laws Utah and Rest Periods

Apart from the mandatory benefits discussed above, other employee rights in Utah include the following.

Anti-Discrimination and Equal Opportunity Laws

Leave Policies in Utah

Moving on, here is a detailed table discussing employee leave policies. It will include Utah maternity leave laws, sick leaves, public holidays, etc. Let’s take a look.

Employee Termination and Severance Policies

As stated earlier, most Utahn employees work at will. This means there can be termination without notice under the Utah employment laws. However, that said, providing a two-week notice period is a customary practice followed by most businesses. 

Furthermore, if you, as an employer, decide to terminate a large number of employees (mass dismissal), you must provide a 60-day notice. 

Some of the most common grounds for terminating the employment relationship include,

• Employee resignation
• Mutual decision by the employer and employee.
• Misconduct
• Performance issues
• Termination during the probationary period
• Absence without leave

Severance pay practices 

Like most other states in the USA, Utah labor laws do not require employers to provide severance pay to their employees.

Workplace Safety and Health Obligations

How to Simplify Utah Employment Compliance

What is the minimum wage in Utah? What is the Utah overtime law? Understanding the answers to all these questions can sometimes confuse business owners. 

This is even more challenging when you are hiring employees from this land. A mistake can lead to non-compliance, which means hefty fines and penalties. 

So, how do we simplify this employment compliance process? 

With an employer-of-record (EOR) like Skuad. Skuad is a global employment solution with an established presence in Utah. This means you no longer have to stress about setting up a subsidiary. 

We will handle everything on your behalf, including the employee onboarding process, payroll processing, compliance matters, etc. 

Benefits of Using Skuad for Utah Employment

As your trusted EOR partner, Skuad features various capabilities. They include,

• Digital onboarding within minutes.
• One-click state of Utah payroll to all employees (100+ currencies)
• Timely and accurate payment processing
• Efficient background checks before onboarding new hires.
• Expense management and automated time tools, among others.

With all these features, you no longer have to worry about employment in Utah. Simply focus on your business's growth and other pressing issues and leave all the hiring challenges to us.

Hire, Pay, and Manage Employees with Skuad

Skuad can truly do it all when it comes to global employment. We believe in transparency and security. 

This means you can track all aspects of international hiring (onboarding, employment costs, net pay, and more) from one dashboard. We have ensured and implemented the highest privacy standards so that your and your employees’ data are always secured against unnecessary threats.

Additionally, with Skuad, you get 24/7 expert support. If you ever face any challenges, you can contact us at any time during the work week. We guarantee that all your queries are resolved.

Book a demo today and experience the Skuad difference first-hand!

FAQs

1: What are the labor laws in Utah?

The main Utah labor laws as per the Utah labor board include the Utah Payment of Wages Act, the Utah Antidiscrimination Act, and the Utah Occupational Safety and Health Act of 1973.

2: How many hours can you work without a break in Utah?

An employee in Utah can take a 15-minute break for every four hours of work. 

3: What are three of the rights you have as a worker?

Under Utah employment laws and worker rights Utah, employees are entitled to paid time off, health benefits, and the right to work in a safe and healthy environment.

4: What qualifies as wrongful termination in Utah?

As per Utah termination requirements, if an employer fires its employees based on grounds that violate the Utah anti discrimination act, laws or breach of contract, it is considered wrongful termination. 

5: Do you have to give a two-week notice in Utah?

Employees are not legally obligated to provide two weeks' notice in Utah since it is an ‘at-will’ employment state. However, it is a standard practice.