Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 284 (2021GS)

Sponsor

Rep. Collard, C.

Final action

House/ filed 3/5/2021

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• modifies the minimum wage;
• modifies the cash wage obligation for a tipped employee;
• provides for future increases of the minimum wage; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

MINIMUM WAGE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Clare Collard
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill amends provisions related to minimum wages.
Highlighted Provisions:
This bill:
▸ modifies the minimum wage;
▸ modifies the cash wage obligation for a tipped employee;
▸ provides for future increases of the minimum wage; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34-40-102
, as last amended by Laws of Utah 2016, Chapter 370
34-40-103
, as last amended by Laws of Utah 1997, Chapter 375
34-40-104
, as last amended by Laws of Utah 2008, Chapter 382
34-40-106
, as last amended by Laws of Utah 2005, Chapter 287
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
34-40-102
 is amended to read:
34-40-102.
Definitions -- Joint employees -- Franchisors.
(1) Subject to Subsection (3), this chapter and the terms used in it, including the
computation of wages, shall be interpreted consistently with the Fair Labor Standards Act of
1938, 29 U.S.C. Sec. 201 et seq., as amended, to the extent that act relates to the payment of a
minimum wage.
(2) As used in this chapter:
(a) "Cash wage obligation" means an hourly wage that an employer pays a tipped
employee regardless of the tips or gratuities [
a
] 
the
 tipped employee receives.
(b) "Commission" means the Labor Commission 
created in Section 
34A-1-103
.
(c) "Division" means the Division of Antidiscrimination and Labor [
in the
commission
] 
created in Section 
34A-1-202
.
(d) "Federal executive agency" means an executive agency, as defined in 5 U.S.C. Sec.
105, of the federal government.
(e) "Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
(f) "Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
(g) "Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
(h) "Minimum wage" means the state minimum hourly wage for 
an
 adult [
employees
as
] 
employee
 established under this chapter[
, unless the context clearly indicates otherwise
].
(i) "Minor" means an individual who is 16 years old or younger.
[
(i)
] 
(j)
 "Tipped employee" means an employee who customarily and regularly receives
tips or gratuities.
(3) Notwithstanding Subsection (1), for purposes of determining whether two or more
persons are considered joint employers under this chapter, an administrative ruling of a federal
executive agency may not be considered a generally applicable law unless that administrative
ruling is determined to be generally applicable by a court of law, or adopted by statute or rule .
(4) (a) For purposes of this chapter, a franchisor is not considered to be an employer of:
(i) a franchisee; or
(ii) a franchisee's employee.
(b) With respect to a specific claim for relief under this chapter made by a franchisee or
a franchisee's employee, this Subsection (4) does not apply to a franchisor under a franchise
that exercises a type or degree of control over the franchisee or the franchisee's employee not
customarily exercised by a franchisor for the purpose of protecting the franchisor's trademarks
and brand.
Section 2. Section 
34-40-103
 is amended to read:
34-40-103.
Minimum wage -- Commission to review and modify minimum wage.
(1) [
(a)
] The minimum wage for [
all private and public employees within the state shall
be $3.35 per hour
] 
a private or public employee within the state is the amount described in
Subsection (2)
.
[
(b) Effective April 1, 1990, the minimum wage shall be $3.80 per hour.
]
[
(2) (a) After July 1, 1990, the commission may by rule establish the minimum wage or
wages as provided in this chapter that may be paid to employees in public and private
employment within the state.
]
[
(b) The minimum wage, as established by the commission, may not exceed the federal
minimum wage as provided in 29 U.S.C. Sec. 201 et seq., the Fair Labor Standards Act of
1938, as amended, in effect at the time of implementation of this section.
]
[
(c) The commission:
]
[
(i) may review the minimum wage at any time;
]
[
(ii) shall review the minimum wage at least every three years; and
]
[
(iii) shall review the minimum wage whenever the federal minimum wage is
changed.
]
[
(3) The commission may provide for separate minimum hourly wages for minors.
]
(2) (a) On and after July 1, 2021, and before July 1, 2022, the minimum wage is $12.00
per hour.
(b) On and after July 1, 2022, and before July 1, 2023, the minimum wage is $12.50
per hour.
(c) On and after July 1, 2023, and before July 1, 2024, the minimum wage is $13.25
per hour.
(d) On and after July 1, 2024, and before July 1, 2025, the minimum wage is $14.00
per hour.
(e) On and after July 1, 2025, and before July 1, 2026, the minimum wage is $15.00
per hour.
(3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may establish by rule a minimum hourly wage for minors that is different from the
minimum wage described in Subsection (1).
(4) The cash wage obligation for a tipped employee within the state is $5.00 per hour.
(5) The commission shall post, on the home page of the commission's website, a
conspicuous and clearly identified link to the current minimum wage and the current cash wage
obligation.
Section 3. Section 
34-40-104
 is amended to read:
34-40-104.
Exemptions.
(1) [
The
] 
Unless the individual is entitled to a minimum wage under the Fair Labor
Standards Act of 1938, 29 U.S.C. Sec. 201 et seq., as amended, the
 minimum wage established
in this chapter does not apply to:
[
(a) any employee who is entitled to a minimum wage as provided in 29 U.S.C. Sec.
et seq., the Fair Labor Standards Act of 1938, as amended;
]
[
(b)
] 
(a) an
 outside sales [
persons
] 
person
;
[
(c)
] 
(b)
 an employee who is a member of the employer's immediate family;
[
(d)
] 
(c)
 companionship service for [
persons
] 
a person
 who, because of age or
infirmity, [
are
] 
is
 unable to care for [
themselves
] 
his or herself
;
[
(e)
] 
(d) a
 casual and domestic [
employees
] 
employee
 as defined by the commission;
[
(f)
] 
(e) a
 seasonal [
employees
] 
employee
 of 
a
 nonprofit camping [
programs
] 
program
,
religious or recreation [
programs, and
] 
program, or
 nonprofit educational and charitable
[
organizations
] 
organization
 registered under Title 13, Chapter 22, Charitable Solicitations Act;
[
(g)
] 
(f)
 an individual employed by the United States of America;
[
(h) any
] 
(g) a
 prisoner employed through the penal system;
[
(i) any
] 
(h) an
 employee employed in agriculture if the employee:
(i) is principally engaged in the range production of livestock;
(ii) is employed as a harvest laborer and is paid on a piece rate basis in an operation
that has been and is generally recognized by custom as having been paid on a piece rate basis in
the region of employment;
(iii) was employed in agriculture less than 13 weeks during the preceding calendar
year; or
(iv) is a retired or semiretired person performing part-time or incidental work as a
condition of the employee's residence on a farm or ranch;
[
(j)
] 
(i) a
 registered [
apprentices or students
] 
apprentice or student
 employed by the
educational institution in which [
they are
] 
the apprentice or student is
 enrolled; or
[
(k) any
] 
(j) a
 seasonal hourly employee employed by a seasonal amusement
establishment with permanent structures and facilities if the other direct monetary
compensation from tips, incentives, commissions, end-of-season bonus, or other forms of pay
is sufficient to cause the average hourly rate of total compensation for the season of seasonal
hourly employees who continue to work to the end of the operating season to equal the
applicable minimum wage if the seasonal amusement establishment:
(i) does not operate for more than seven months in any calendar year; or
(ii) during the preceding calendar year [
its
] 
the seasonal amusement establishment's
average receipts for any six months of that year were not more than 33-1/3% of [
its
] 
the
seasonal amusement establishment's
 average receipts for the other six months of that year.
(2) (a) [
Persons
] 
A person
 with a disability whose earnings or productive capacities are
impaired by age, physical or mental deficiencies, or injury may be employed at wages that are
lower than the minimum wage, provided the wage is related to the employee's productivity.
(b) The commission may establish and regulate the wages paid or wage scales for
persons with a disability.
(3) The commission may establish or may set a lesser minimum wage for learners not
to exceed the first 160 hours of employment.
(4) (a) An employer of a tipped employee shall pay the tipped employee at least the
minimum wage established by this chapter.
(b) In computing a tipped employee's wage under this Subsection (4), an employer of a
tipped employee:
(i) shall pay the tipped employee at least the cash wage obligation as an hourly wage;
and
(ii) may compute the remainder of the tipped employee's wage using the tips or
gratuities the tipped employee actually receives.
(c) An employee shall retain all tips and gratuities except to the extent that the
employee participates in a bona fide tip pooling or sharing arrangement with other tipped
employees.
[
(d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission shall by rule establish the cash wage obligation in conjunction with its review
of the minimum wage under Section 
34-40-103
.
]
Section 4. Section 
34-40-106
 is amended to read:
34-40-106.
Limitations on minimum wage imposed by cities, towns, or counties.
(1) A city, town, or county may not establish, mandate, or require a minimum wage
that exceeds the [
federal
] minimum wage [
as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor
Standards Act of 1938
] 
described in Section 
34-40-103
.
(2) (a) A city, town, or county may not require that a person who contracts with the
city, town, or county pay [
that
] 
the
 person's employees a wage that exceeds the [
federal
]
minimum wage [
as provided in 29 U.S.C. Sec. 201 et seq., Fair Labor Standards Act of 1938
]
described in Section 
34-40-103
.
(b) Subsection (2)(a) does not apply when federal law requires the payment of a
specified wage to persons working on projects funded in whole or in part by federal funds.
(c) Subsection (2)(a) applies to contracts executed on or after [
April 30, 2001
] 
July 1,
.
(3) (a) If a city, town, or county contracts with a person for the direct purchase of goods
or services, in awarding or otherwise executing that contract, the city, town, or county may not
give any preferential treatment to a person on the basis that the person pays that person's
employees a wage that exceeds the minimum wage [
as provided in 29 U.S.C. 201 et seq., Fair
Labor Standards Act of 1938
] 
described in Section 
34-40-103
.
(b) This Subsection (3) does not apply when federal law requires the consideration of
whether a person pays the person's employees a specified wage to persons working on projects
funded in whole or in part by federal funds.
(c) This Subsection (3) applies to contracts executed on or after [
May 2, 2005
] 
July 1,
.
(4) (a) The restrictions of this section on a city, town, or county apply to any entity
created by the city, town, or county.
(b) This Subsection (4) applies to contracts executed on or after [
May 2, 2005
] 
July 1,
.