No. 30008: R610-1-3. Coverage

DAR File No.: 30008
Filed: 07/13/2007, 10:40
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this change in proposed rule is to conform Utah's state minimum wage standards to recent increases in the federal minimum wage.

Summary of the rule or change:

This rule change raises the Utah minimum wage from $5.15 to $7.25 over a period of two years. This rule leaves the training wage for minor employees at $4.25 for the first 90 days of employment, thereafter a minor employee will be paid at the established minimum wage. (DAR NOTE: This change in proposed rule has been filed to make additional changes to a proposed amendment that was published in the June 15, 2007, issue of the Utah State Bulletin, on page 41. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the change in proposed rule and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

State statutory or constitutional authorization for this rule:

Sections 34-23-101 et seq.; 34-28-1 et seq.; 34-40-101 et seq.; and 63-46b-1 et seq.

Anticipated cost or savings to:

the state budget:

In light of the expansive reach of the federal minimum wage, most, if not all, of the employers in Utah will be covered by its requirements. Therefore, the Labor Commission does not anticipate that increasing Utah's minimum wage will have any significant effect on the State budget since virtually all employers will be required to abide by the federal minimum wage increase. The Labor Commission anticipates that the amendment will have no fiscal impact on its minimum wage enforcement obligations.

local governments:

In light of the expansive reach of the federal minimum wage, most, if not all, of the employers in Utah will be covered by its requirements. Therefore, the Labor Commission does not anticipate that increasing Utah's minimum wage will have any significant effect on local government since virtually all employers will be required to abide by the federal minimum wage increase.

other persons:

In light of the expansive reach of the federal minimum wage, most, if not all, of the employers in Utah will be covered by its requirements. Therefore, the Labor Commission does not anticipate that increasing Utah's minimum wage will have any significant effect on small businesses and persons other than businesses, since virtually all employers will be required to abide by the federal minimum wage increase.

Compliance costs for affected persons:

The Labor Commission does not anticipate that increasing Utah's minimum wage will result in any significant increases in compliance costs for affected persons since virtually all employers will be required to abide by the federal minimum wage increase. The Labor Commission anticipates that the amendment will have no fiscal impact on its minimum wage enforcement obligations.

Comments by the department head on the fiscal impact the rule may have on businesses:

In almost all circumstances, businesses are required to pay employees the minimum wage established by federal law. Consequently, the Utah minimum wage requirement has no additional impact and will not impose additional burden on businesses. Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Antidiscrimination and Labor, Labor
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY UT 84111-2316

Direct questions regarding this rule to:

Heather Morrison at the above address, by phone at 801-530-6921, by FAX at 801-530-7601, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

08/31/2007

This rule may become effective on:

09/08/2007

Authorized by:

Sherrie Hayashi, Commissioner

RULE TEXT

R610. Labor Commission, Antidiscrimination and Labor, Labor.

R610-1. Minimum Wage, Clarify Tip Credit, and Enforcement.

R610-1-3. Coverage.

A. All employers employing workers in the state of Utah, except those exempted by Section 34-40-104, shall pay the established minimum hourly wages of $5.[15]85 an hour for all hours employed effective through [July 23]September 8, 2007; $[5.85]6.55 an hour for all hours employed effective July 24, [2007]2008; [$6.55 an hour for all hours employed effective July 24, 2008; ]and $7.25 an hour for all hours employed effective July 24, 2009.

B. As per Sections 34-23-301 and 34-40-103, effective through July 23, 2007, a minor employee shall be paid at least $4.25 per hour for the first 90 days of employment with an employer; and thereafter, [shall be paid the ]minimum wage established in subsection A of this rule.

C. Any employer claiming exemption under Subsection 34-40-104(1)(k), shall provide to the Division a statistical report of the average wage paid within 60 days of the end of the regular operating season. The Division may, upon notice, perform an on-site inspection to verify the report in accordance with Sections 34-40-201 and 34-40-203.

 

KEY: wages, minors, labor, time

Date of Enactment or Last Substantive Amendment: 2007

Notice of Continuation: November 30, 2006

Authorizing, and Implemented or Interpreted Law: 34-23-101 et seq.; 34-28-1 et seq.; 34-40-101 et seq.; 63-46b-1 et seq.