Wages and Hours Law

FAIR LABOR STANDARDS ACT

General Summary

The federal Fair Labor Standards Act (FLSA) establishes a minimum wage to be paid to all employees and requires the payment of overtime wages to non-exempt employees for hours worked in excess of 40 hours during a seven day period. The FLSA proscribes the use of oppressive child labor and prohibits employers from discriminating among employees with respect to wages on the basis of gender. Failure to comply with the requirements of the FLSA exposes the employer to both civil and criminal liability in the form of civil penalties, imprisonment, payment of lost wages and additional liquidated damages, as well as compelled hiring, reinstatement or promotion of affected employees.

Requirements
The FLSA requires that employers pay employees a minimum of

$7.25 an hour. 29 U.S.C. § 206(a)(1). The FLSA establishes a maximum workweek of forty hours beyond which compensation of one and one half times the employee’s “regular rate” must be paid. An employee’s right to receive overtime pay cannot be waived; any exceptions are restricted to the statutory exclusions. 29 U.S.C. § 207(a),(e); 29 C.F.R. § 778. For hourly employees the “regular rate” is their hourly rate. For other employees, the regular rate is determined by dividing the employees’ total earnings for the workweek by the total number of hours worked. 29 C.F.R. § 778.109. The FLSA does not limit the number of hours that may be worked by an adult employee, but requires overtime compensation for hours in excess for forty (40) for the workweek. Overtime pay is not required for hours worked in excess of any daily number, nor is it required for work performed on Saturdays, Sundays, or holidays, or for work done at unusual or undesirable times. 29 C.F.R. § 778.102.

Exempt Employees
Minimum wage and maximum hour requirements do not apply to the certain categories of exempt employees. Some of the categories of exempt employees include:

Executives: Any individual employed in a bona fide executive position. 29 U.S.C. § 213(a)(1).
Administrators: Any individual employed in a bona fide administrative position. 29 U.S.C. § 213(a)(1).
Professionals: Any individual employed in a bona fide professional capacity. 29 U.S.C. § 213(a)(1).
Computer Employees: An employee paid more than $455.00 per week on a salary or fee basis or at a rate of not less than $27.63 per hour is exempt if the employee’s primary duty consists of work that requires theoretical and practical application of highly specialized knowledge in computer systems analysis techniques and procedures; documentation, analysis, creation, testing, or modification of computer systems or programs; and the design, documentation, testing, creation, or modification of computer programs related to machine operating systems. Employees in computer manufacturing or repair or employees dependent upon computer applications and systems are not included in this category. 29 U.S.C. § 213(a)(17).
Outside Sales: Employees that are customarily and regularly engaged away from the employer’s place of business and the employee’s primary duty is making sales or obtaining orders or contracts for services or for the use of facilities for which consideration will be paid. 29 C.F.R. § 541.500.

Seasonal Employees: Employees of recreational or amusement establishments, organized camps, religious or nonprofit educational conference centers if they do not operate for more than seven (7) months per year or in other special circumstances. 29 U.S.C. § 213(a)(3).
Household Help: Persons employed on a casual basis in domestic service, such as baby-sitting or companionship services for individuals unable to care for themselves. 29 U.S.C. § 213(a) (15).

PAYMENT OF WAGES

General Summary

Employers are generally required to ensure that wages are paid on a semi-monthly basis within ten days of the close of each pay period. When employment is terminated, wages must be paid within 24 hours of termination. When an employee resigns, wages earned are due and payable on the next regular payday. Offsets and deductions from paychecks are severely restricted by regulation and, when permissible, must be reflected on the pay stub provided to employees with their paychecks. Failure to comply with the provisions governing payment of wages subjects employers to criminal sanctions, money penalties and civil liability.

Employers must pay wages earned semi-monthly or twice during each calendar month on days designated in advance as regular paydays.

U.C.A. § 34-28-3(1). If an employer hires employees on a yearly salary basis, the employer may pay an employee on a monthly basis by paying on or before the seventh of the month following the month for which services were rendered. Id. § 34-28-3(1)(d). An employer must pay for services rendered during each semi-monthly period within ten days after the close of each pay period. If the semi-monthly payday falls on Saturday, Sunday or a legal holiday, payment of wages earned during the semi-monthly period must be made on the preceding day. U.C.A.

§ 34-28-3(1). An employer must notify employees at the time of hiring of the day and place of payment, the rate of pay, and of any change

with respect to any of these items prior to the time of change. After employment begins, such notices may be given by posting a notice at a conspicuous place where the notice will be seen as each employee comes or goes to work. U.C.A. § 34-28-4. Any deduction made from the wages paid must be itemized on a statement or detachable check stub provided to the employee with the employee’s paycheck. U.C.A. § 34-28-3(4); Utah Admin. Code R610-3-20.

An employee who is involuntarily terminated must receive a final paycheck within 24 hours of the time of separation. U.C.A. § 34-28- 5(1). Persons employed as sales agents and paid on a commission basis who have custody of accounts, money, or goods of the employer are not required to be paid within 24 hours of termination if the net amount due such employee can be determined only after an audit or verification of the employee’s sales, accounts, funds, or stocks. U.C.A. § 34-28-5(4). An employee who does not have a written contract for a definite period and who resigns employment may be given a final paycheck together with any deposit held by the employer and properly payable to the employee on the next regular payday. U.C.A. § 34-28-5(2). When the amount of wages due an employee is in dispute, the employer must provide written notice to the employee of the amount of wages the employer contends to be due and shall pay that amount without condition within the proper time period. Acceptance of such payment by the employee does not constitute a release as to any remaining wages. U.C.A. § 34-28 6; Utah Admin. Code R610-3-19.

Each employer must keep a true and accurate record of time worked and wages paid each pay period to each employee employed on an hourly basis. Such records must be kept on file for at least one year after being created. U.C.A. § 34-28-10.