Whether you're an entrepreneur hiring your first employees or an established company with a long history of managing staff, your business must comply with federal, state, and local employment regulations. Failure to comply could lead to financial penalties, lawsuits from employees, or action from regulatory bodies such as the Utah Labor Commission. 

At Sumsion Business Law we understand that your primary focus is on growing a successful business. At the same time, we recognize the importance of being compliant with the law to protect both you and your employees. As a business owner in Utah, there are several laws you should be aware of in order to safeguard your business and maintain a fair, legally compliant workplace.

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Minimum Wage

Utah’s minimum wage currently aligns with the federal minimum wage at $7.25 per hour or $2.15 for employees that also receive tips. Utah is unique in not having any state-specific overtime laws. However, employers must still comply with the Fair Labor Standards Act (FLSA) which requires that non-exempt employees are paid time-and-a-half pay for hours worked over 40 hours in a week.

In order to stay in compliance with minimum wage laws employers must:

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• Track employee hours accurately
• Document all wages and tips accurately
• Review payroll often and address any discrepancies
• Stay informed of changes at the state or federal level

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Anti-Discrimination Laws

The Utah Antidiscrimination Act (UAA) “Prohibits employment discrimination on the basis of race, color, religion, sex, age (40 or over), national origin, disability, sexual orientation, gender identity, pregnancy, childbirth or pregnancy-related conditions.” This act has also added sections to protect expression of religious and moral beliefs within the workplace. Under this act employers cannot hire, fire, demote, retaliate, or discriminate against an individual for political, religious, or personal beliefs expressed outside of the workplace.

In addition, Utah businesses must comply with all federal anti-discrimination laws including the Civil Rights Act of 1964, Age Discrimination in Employment Act (ADEA), and Americans with Disabilities Act (ADA). These regulations ensure that hiring, firing, promotions, and discipline decisions are based on lawful factors such as: merit, experience, work product, and performance, and not on immutable characteristics such as race, gender, or other prohibited factors.

Employers with 15 or more employees are required to comply with the ADA and UAA. Some steps you can take to ensure that you business complies with these include:

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• Provide training on discrimination and harassment for employees.
• Create processes to report discrimination.
• Implement policies to prevent discrimination.

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Creating a workplace environment that is inclusive and discrimination free helps to mitigate legal risks and increases employee satisfaction.

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Employment At-Will in Utah

In Utah, employers have the right to fire employees for any reason, or no reason at all, so long as it does not violate other laws. This is known as the employment at-will doctrine, but employers must be aware of exceptions to this rule. Exceptions include but are not limited to:

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• Discrimination: Terminating employment due to race, gender, religion or other protected classes is a violation of both state and federal laws as stated above.
• Public Policy: Employees can not be terminated for exercising rights afforded to them under public policy. For example, reporting illegal activity or exercising statutory rights such as jury duty.
• Implied Contracts: Even though Utah’s an at-will state, if the employer's policies, written handbook, or oral assurances create a reasonable expectation of continued employment or job security then it may limit an employer's ability to legally terminate employment.
• Protected Leave: Employees on job-protected leave such as maternity leave, anything under the Family and Medical Care Act, or statutory leave such as jury duty or parental leave cannot legally be terminated.
• Retaliation: Employers cannot terminate an employee for whistleblowing or reporting illegal activity.

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Family and Medical Leave Act

The Family and Medical Leave Act (FMLA) is a federal act that requires businesses to provide qualified workers for up to 12 weeks of unpaid, job protected, leave for certain family or medical reasons. Utah businesses with 50 or more employees are required to comply with FMLA, but Utah does not have other state specific family leave laws. Employers are encouraged to create their own leave policies that are in compliance with federal laws.

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Conclusion

Regardless of the size of your business, if you employ workers you are subject to a wide range of state and federal employment laws. Noncompliance with these regulations can lead to heavy legal and financial consequences for your business. The information provided here represents only a brief overview of the complex nature of employment law. 

To safeguard your business and ensure that you are in full compliance with federal and state laws, the attorneys at Sumsion Business Law offer experienced, tailored counseling to meet your company's specific needs. For advice and representation for your business, contact us today.