Employee Disclosure Requirements

13
34-28-2
34-28-4
34-28-12
0
Employee Disclosure Requirements
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lisa Shepherd
Senate Sponsor:
LONG TITLE
General Description:
This bill modifies provisions relating to an employee's compensation.
Highlighted Provisions:
This bill:
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34-28-2
, as last amended by Laws of Utah 2018, Chapter 386
34-28-4
, as last amended by Laws of Utah 2018, Chapter 148
34-28-12
, as last amended by Laws of Utah 2018, Chapter 148
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
34-28-2
is amended to read:
34-28-2
. Definitions -- Unincorporated entities -- Joint employers -- Franchisors.
(1)
As used in this chapter:
(a)
"Commission" means the Labor Commission
created in Section
34A-1-103
.
(b)
"Division" means the Division of Antidiscrimination and Labor
created in Section
34A-1-202
.
(c)
(i)
"Employer" means the same as that term is defined in 29 U.S.C. Sec. 203.
(ii)
"Employer"
does not include an individual who is not
includes an individual
who is
:
(A)
an officer;
(B)
a manager of a manager-managed limited liability company;
(C)
a member of a member-managed limited liability company;
(D)
a general partner of a limited partnership; or
(E)
a partner of a partnership.
(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)
"Unincorporated entity" means an entity organized or doing business in the state that
is not:
(i)
an individual;
(ii)
a corporation; or
(iii)
publicly traded.
(i)
"Wages" means the amounts due the employee for labor or services, whether the
amount is fixed or ascertained on a time, task, piece, commission basis or other
method of calculating such amount.
"Wages" means compensation an employer owes
to an employee for labor or a service, regardless of how the employer calculates the
amount owed to the employee.
(2)
(a)
For purposes of this chapter,
There is a rebuttable presumption that
an
unincorporated entity that is required to be licensed under
Title 58, Chapter 55, Utah
Construction Trades Licensing Act
,
, is presumed to be the employer of
employs

each individual who
,

directly or indirectly
,
holds an ownership interest in the
unincorporated entity.
(b)
Pursuant to rules made by the commission in accordance with
Title 63G, Chapter 3,
Utah Administrative Rulemaking Act
, an
An
unincorporated entity may rebut the
presumption
under Subsection
(2)(a)
for an individual
by establishing by clear and
convincing evidence that the individual:
(i)
is an active manager of the unincorporated entity;
(ii)
directly or indirectly holds at least an 8% ownership interest in the unincorporated
entity; or
(iii)
is not subject to supervision or control in the performance of work by:
(A)
the unincorporated entity; or
(B)
a person with whom the unincorporated entity contracts.
(c)
As part of the rules made under Subsection
(2)(b)
, the commission may define
The
commission may define by rule made in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act
:
(i)
"active manager";
(ii)
"directly or indirectly holds at least an 8% ownership interest"; and
(iii)
"subject to supervision or control in the performance of work."
(d)
The commission by rule made in accordance with
Title 63G, Chapter 3, Utah
Administrative Rulemaking Act
, may establish a procedure, consistent with Section
34-28-7
, under which an unincorporated entity may seek approval of a mutual
agreement to pay wages on non-regular paydays.
The commission may establish, by
rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
Act, a procedure consistent with Section
34-28-7
that allows an unincorporated entity
to seek approval of a mutual agreement to pay wages on non-regular paydays.
(3)
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
An administrative ruling of a
federal executive agency may not be considered a generally applicable law when
determining whether two or more persons are joint employers unless:
(a)
a court determines the
administrative ruling is
determined to be generally applicable
by a court of law, or adopted by statute or rule
generally applicable; or
(b)
the commission makes a rule adopting the administrative ruling
.
(4)
(a)
For
Except as provided in Subsection
(4)(b)
,
purposes of this chapter, a
franchisor is not considered to be an employer of
a franchisor is not 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.
Subsection
(4)(a)
does not apply to
a franchisor in a specific claim for relief under this chapter if the franchisor exercises
a type or degree of control over the franchisee or the franchisee's employee that a
franchisor does not customarily exercise to protect the franchisor's trademark or
brand.
Section 2. Section
34-28-4
is amended to read:
34-28-4
. Notice of paydays.
(1)
It shall be the duty of every employer to notify the employer's employees at the time of
hiring of the day and place of payment, of the rate of pay, and of any change with
respect to any of these items prior to the time of the change. Alternatively, however,
every employer shall have the option of giving such notification by posting these facts
and keeping them posted conspicuously at or near the place of work where such posted
notice can be seen by each employee as the employee comes or goes to the employee's
place of work.
(1)
An employer shall notify each employee at the time of hiring of:
(a)
the day and place of payment; and
(b)
the rate of pay.
(2)
An employer shall notify each employee of a change to the day or place of payment or
the rate of pay before the change takes effect.
(3)
An employer may satisfy the notification requirements under this section by
conspicuously posting notice of the required information in a location where each
employee may see the notice when arriving or leaving the workplace.
(2)
Failure to post and to keep posted any notice or failure to give notice as prescribed in
this section is a class B misdemeanor.
Section 3. Section
34-28-12
is amended to read:
34-28-12
. Violations -- Misdemeanor.
(1)
Any employer who
An employer that
violates or fails to comply with
any of the
provisions
a provision
of this chapter is guilty of a class B misdemeanor.
(2)
An employer is guilty of a class B misdemeanor if the employer:
(a)
refuses to pay the wages due to an employee;
(b)
falsifies the amount of wages earned or falsely denies that wages are due to an
employee to:
(i)
reduce the amount of wages due to the employee; or
(ii)
delay or defraud the employee; or
(c)
hires an additional employee without disclosing to the additional employee an
unsatisfied unpaid wage claim or judgment.
(2)
Any employer who shall refuse to pay the wages due and payable when demanded as
in this chapter provided, or who shall falsely deny the amount thereof, or that the same is
due, with intent to secure for the employer or any other person any discount upon such
indebtedness or with intent to annoy, harass, oppress, hinder, delay or defraud the person
to whom such indebtedness is due, or who hires additional employees without advising
each of them of every wage claim due and unpaid and of every judgment that the
employer has failed to satisfy, is guilty of a class B misdemeanor.
Section 4.
Effective Date.
This bill takes effect on
May 6, 2026
.
1-2-26 4:34 PM