How Utah Deals With Employment Termination
Utah is an employment-at-will state, meaning employers can generally terminate employees at any time without having to provide a reason or follow a specific process. Employees also have the right to leave their jobs at any time, regardless of the current work situation. However, once involved in the Utah employment process, both parties must respect applicable labor laws.
For example, Utah and federal law protect employees from unlawful termination that can result from discrimination, retaliation or harassment. Both federal and Utah law makes it illegal for an employer to fire a worker based on a protected characteristic such as race, religion, national origin , ethnicity, gender, age, pregnancy, disability or genetic information. The U.S. Equal Employment Opportunities Commission (EEOC) is responsible for enforcing most federal anti-discrimination laws.
In Utah, the Utah Antidiscrimination and Labor Act requires the Utah Labor Commission (ULC) to enforce the law regarding protected classes within the hiring and firing process. The ULC also enforces the Utah Genetic Information Non-Disclosure Act, which prohibits employers from using genetic information in the workplace. The ULC also oversees the Utah Antidiscrimination Act of 1965, which prevents employers from terminating employees as an act of retaliation.
Utah Final Paycheck Laws
In Utah, employers must issue final paychecks within the time frame of when the next wage payment would be due if the employee had not been separated from employment. If Utah state law or an employer’s policy or practice provides for greater payments of wages than federal law under the FLSA or Wyoming state law, the employer is required to comply with those laws instead.
Further, employers that have employed an employee for less than ten days must pay the employee wages accrued no later than the end of the next succeeding business day.
If a notice of termination is provided and the employee separated from employment, the final paycheck would be due under any of the following dates, whichever occurs first: (1) on the next regular pay day; (2) within 14 days of termination; (3) within 72 hours of termination occurring without notice; or (4) within six months of involuntary termination (when the employer had no influence in the termination). The time frame for paying a final paycheck to a voluntarily-terminated employee is similar, except an employer has 10 days from the date of notice to provide the final paycheck.
Utah employers should also be aware of other state laws, including the requirement that employers shall give paying of wages either individually, or by paying to an employee’s designated third party, or by other methods provided by the policies and procedures of the employer.
Required Components of Your Final Paycheck
Employers must pay employees for every hour worked. Under Utah Code Ann. § 34-28-5, employers must pay employees for "all hours worked, including overtime pay rates."
Including in "all hours worked" are time spent doing the following: waiting for assignments; doing work in home or at a second job; time spent under the control of the employer (e.g., by requiring employees to stay on-site while "waiting for assignments"); waiting for an assignment to arrive; putting on and taking off work clothes; cleaning up; attending training sessions; undergoing drug tests; and using the employer’s equipment to perform functions unrelated to the business.
Utah law also requires employers to pay all accrued paid time off such as vacation pay, sick leave, and bonuses upon termination. If the employer does not pay these accrued benefits, the employee can seek relief under Utah Code Ann. § 34-28-5(2). Utah law requires the employer to pay the employee all wages due on or before the next regularly scheduled pay day.
If the employee succeeds, the trial court awarding the employee the unpaid wages must award the employee his or her reasonable attorney fees and costs. Utah Code Ann. § 34-28-8.
Employer Penalties for Delaying Final Paycheck
As in most states, Utah’s law concerning an employee’s right to their final paycheck after the employee is terminated is very clear. However, Utah also has a pretty complicated procedure for dealing with employers who fail to pay their former employees all future wages required by a lawfully terminated employment contract. Leave it to both the legislature and the courts to make a simple issue complicated.
The law provides, simply, that in the event an employer willfully fails to pay an employee a lawful termination payment, the former employee can recover a civil penalty of up to 60 days’ wages.
The amount of the civil penalty increases if you were terminated more than one time in the past and the employer failed to pay you the required termination payments by the next regular payday for any of your prior terminations. (Actual case law holding: if you are terminated more than one time in past and you are not paid the required termination payments by the next regular payday for any past termination, you can receive 60-day wages as damages for each past termination. Stokes v. Savage Companies of Utah, 300 P.3d 861 (Utah 2013)).
The court held that "the statute allows an employee some recovery that is unrelated to actual damages. The words "civil penalty" indicate that the legislature intended to provide something more than damages . The use of "willful" as a condition for obtaining such a penalty means that the legislature intended to limit the award of civil penalties to cases of repeated violations where an employee has no recourse to collect from the employer." Stokes, 300 P.3d at 868.
The employer can avoid the civil penalty if it "can prove that the violation was made in good faith pursuant to a mistake of fact and that the employer took every reasonable precaution to comply with the provisions of this chapter and the violation was not caused by an indifference to the requirements of [the Code]." Practically speaking, this means that you have to show that you truly miscalculated what your obligations were and can’t be fully to blame. Good luck.
Note also that the plaintiff does not have to establish that the employer acted willfully. Rather, if the employee can prove that the employer willfully failed to pay on a lawful termination payment, then a civil penalty is available at the discretion of the trial court. (Actual case law holding: the employee does not need to prove that the employer willfully failed to pay in order to obtain a civil penalty under section 34-11-006.5(1)(a)(ii). Lee v. Southern Pacific Mortg. Co., 128 P.3d 1196 (Utah 2006))
What To Do If You Don’t Get Your Final Paycheck
If you are terminated or quit and your employer has not paid you your final paycheck, Utah Code Ann. § 34-28-7 states: (1) An employee whose employment is terminated by the employer is entitled to payment of all final wages due him at the time of termination. An employee whose employment is terminated by his quitting is entitled to payment of all final wages due him within 14 days after the day his employment terminates.
If you have not received your final paycheck, you are not alone. It happens to many workers in Utah at one time or another. If you wish to make sure you get paid all the wages you have earned, you can file a complaint with the Utah Labor Commission. Application Form UI 18. The form UI 18 and a filing "Fee of $10" must be sent to the "Division of Antidiscrimination and Labor" with the "Utah Labor Commission," "160 East 300 South, 5th Floor," "Salt Lake City, Utah 84111." All claims must be filed within "180 days after the event giving rise to the claim." If you file on the UI 18 form, "money orders or checks only." Usually the "Labor Commission will write to your former employer and ask for a response." If the "employer filed a written response and more information is needed, an investigator may request an in-person interview with your former boss, most likely at the Labor Commission Regional Office nearest your workplace." If your former boss refuses to meet the investigator in person, the investigator "may use the information in your statement" to "determine if the letter of claim" sent to the employer by the agency was "viable." If the employer provides the necessary information, the Utah Labor Commission will decide on a possible payment agreement with the employer. Note however that if "after sending the employer a letter of claim, it appears to the Director that an opinion may be issued and to avoid a lengthy investigation, the Director may issue an opinion . . . ." that the complainant is "entitled to a jury trial." It is important to note that this process takes time. Therefore it is important to talk to an attorney who knows not only the process to take but also whether or not you have a claim under Utah law.
Legal Help
Employees in Utah who have experienced issues related to termination and final paychecks may benefit from the services of an experienced attorney. While the Utah Department of Workforce Services can assist those with unpaid wages, individuals seeking advice about unpaid wages, wrongful termination or even step-by-step assistance with filing a claim can get help elsewhere . The Utah State Bar Lawyer Referral Service can connect those who have recently been terminated with an attorney who can offer a free telephone consultation. The service provides a local referral based on the area of law a client needs assistance with. No representation is offered, nor are legal opinions provided. The Utah State Bar Lawyer Referral Service can be reached at (801) 531-9077, or toll-free at (800) 662-9077.