labor lawAdivision of labor law center

On July 24, 2008, the federal minimum wage increased by 70 cents from $5.85 per hour to $6.55 per hour. Like the minimum wage in several other states, the Utah minimum wage also increased to $6.55 per hour.

 

Unlike the other states, such as Oklahoma, Maryland and South Dakota, Utah doesn’t automatically add the increase to its state minimum wage. The Utah Labor Commission must take administrative action in order to adopt the federal minimum as its state minimum. The Labor Commissioner must review the rate when a change occurs and determine if Utah will increase its rate as well. The law therefore doesn’t require the Utah minimum to increase.

The increase to the federal minimum on July 24, 2008 was the second jump in a series of three increases as mandated by the Fair Minimum Wage Act of 2007. In 2007, the Utah Labor Commission established a similar series of increases to its state minimum wage, the first increase in a decade.

 

The first increase didn’t coincide with the federal increase, but occurred some weeks later on September 8, 2007. This action did set up the second and third increases to coincide with the federal minimum wage increases. The third Utah minimum wage increase, then, will occur on July 24, 2009.

 

Any changes to the Utah minimum wage after that will require special action by the Utah Labor Commission.

 

The federal minimum increase did not, however, include an increase for tipped employers. Neither did the Utah increase. Through 2009, tipped employees can still only earn $2.13 per hour as long as they earn $30 per month from tips. If the worker doesn’t make the $30 target, the employer must make up the difference in wages.

 

Utah state law also allows employers to pay workers under the age of 18 a training wage of $4.25 per hour during the first 90 days of employment. After the 90 days are completed, the employee must receive full minimum wage.

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