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Nobody ever said running a business was easy. As an employer, you have many things to handle, and compliance is just one of them.
In addition to federal regulations, each state has its own share of employment-related laws that business owners need to be aware of. Here, we’re highlighting some of these key state-specific requirements, and offering guidance to help you keep up.
Bear in mind that this list is not comprehensive, and there may be local or industry-specific employment requirements that your business needs to comply with. It’s best to consult with counsel to ensure compliance with all applicable laws, as Justworks does not provide legal advice.
Payroll Tax Accounts
Because Justworks reports state unemployment taxes on behalf of customers who utilize Justworks’ PEO services, employers will need to close their Utah unemployment and withholding accounts prior to joining the Justworks platform. Linked here are the steps you’ll need to take: Utah - State Unemployment Insurance.
Recruiting & Hiring Practices
E-Verify
Utah law requires private employers with 150 or more employees to enroll and participate in E-Verify, which allows participating employers to electronically verify the employment eligibility of their employees. E-Verify compares information from Form I-9 to government records to confirm that an employee is authorized to work in the U.S.
State Regulation: Utah Documented Employment Registry
Mineral*: Utah Employment Verification and New Hire Reporting
Drug Testing Restrictions
Utah employers can typically conduct drug and alcohol tests in cases of pre-employment screenings, possible employee impairment, investigation of accidents in the workplace, incidents of workplace theft, and maintenance of safety for employees or the general public.
Testing or retesting for the presence of drugs or alcohol by an employer shall be carried out within the terms of a written policy, which has been distributed to current employees and is available for review by prospective employees.
State Regulation: Drug and Alcohol Testing
Independent Contractors
When deciding whether to classify workers as employees or independent contractors, there are a few things your business should consider, including the varying tests that apply under different federal and state employment laws, and the potential penalties and other liabilities for misclassifying employees as independent contractors.
You can read our general Help Center article on contractors, and view information on how to determine if someone is an independent contractor or employee in Utah in the relevant section linked below.
State Regulation: Guidelines for Employment Status (Independent Contractors)
State Regulation: Additional Resources
Mineral*: Utah Independent Contractors
Pay Requirements
Minimum Wage & Overtime
Utah employers can find the most up-to-date minimum wage requirements from the Utah Labor Commission.
The Utah Payment of Wages Act outlines the requirements for paying wages to employees and an employer's responsibilities regarding paydays, final paychecks, electronic payroll deposits, lawful deductions, wage disputes, and payroll records.
Harassment & Discrimination
In addition to protections under federal law, Utah law prohibits employment discrimination based on membership in any protected class by employers covered under Utah's anti-discrimination laws.
The Utah Antidiscrimination Act 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.
Utah has also added additional protections which provide that employees may express religious and moral beliefs in the workplace in a reasonable manner on equal terms with similar expressions allowed by the employer and that employers may not discharge, demote, refuse to hire, retaliate, or discriminate against an individual based on expressions of religious, political, or personal belief outside of the workplace.
Utah prohibits employers from requiring confidentiality clauses or agreements that block employees from speaking openly about sexual misconduct allegations in the workplace.
State Regulation: Employment Discrimination
State Regulation: Legislation
Separation
When separating with an employee, Utah employers should familiarize themselves with specific compliance issues and certain key considerations.
Utah Workforce Services: How to file a claim for unemployment insurance benefits
Final wage payment requirements
In Utah, if an employee voluntarily resigns, final wages can be issued on the next regularly scheduled payday. For an involuntary separation, all wages must be paid within 24 hours of separation. Exceptions may apply for commissioned sales agents.
To schedule a payment for a Utah employee who is involuntarily separated, please contact Justworks Support.
Vacation payout requirements
Accrued, unused vacation time need not be paid out to the employee unless the employer’s policy requires it. Employers should clearly set forth in writing any policy with respect to unused vacation.
Business Closings and Layoffs
The Federal Worker Adjustment and Retraining Notification (WARN) Act imposes certain notices and other obligations on covered businesses before conducting large-scale business closures, layoffs, or relocations.
U.S. Department of Labor: Worker Adjustment and Retraining Notification (WARN) Act Advisor
Notes
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Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.