Overview of Hiring Laws in Utah

Utah employment laws largely align with federal standards while maintaining select state-level protections and a straightforward regulatory environment. The state’s Utah Labor Commission Antidiscrimination and Labor Division (UALD), Utah Department of Workforce Services, and the Equal Employment Opportunity Commission (EEOC) oversee most employment standards, including wage and hour rules, anti-discrimination protections, new hire reporting, and workplace safety.

One of the most notable aspects of Utah employment law is the state’s reliance on the federal minimum wage since 2009, combined with failed legislative attempts to establish age-based minimum wage tiers (HB0549 in 2023-2025, HB205 in 2024). Additionally, certain municipalities including Salt Lake City have established higher local minimum wages, creating a complex wage landscape where employers must comply with the highest applicable rate.

These rules reflect Utah’s straightforward approach combining federal standards with local wage variations and targeted state anti-discrimination protections.

Utah Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Utah Antidiscrimination Act (UAA), codified in Utah Code § 34A-5-101 et seq., prohibits employment discrimination based on race, color, religion, sex (including pregnancy, childbirth, and related medical conditions), age (40 and older), national origin, disability, sexual orientation, gender identity, and genetic information. Utah also prohibits employment discrimination and retaliation based on employees’ expressions of religious, political, or personal beliefs outside the workplace, a unique protection reflecting the state’s cultural values.

• Employer coverage: The UAA applies to employers with 15 or more employees for most protected classes, aligning with federal Title VII. However, Utah provides broader age discrimination protection: the state prohibits age discrimination for employees 40 and older but also protects younger workers in limited circumstances, and provides some protections to employers with fewer than 15 employees on age discrimination claims.
• Work-sharing agreement with EEOC: The Utah Antidiscrimination and Labor Division (UALD) administers and enforces the UAA. UALD has a work-sharing agreement with the EEOC, meaning employees can file with either agency and the case will be cross-filed automatically (unless the EEOC determines to investigate separately). This means employees have 180 days to file with UALD (after which the case is referred to EEOC if within 300 days), providing extended filing windows compared to many states.
• No private right of action: Importantly, there is no private right of action under Utah law for discrimination claims—employees must go through the administrative process with UALD or EEOC before filing in court. This makes the administrative process the primary avenue for resolving discrimination claims.

Employers are required to maintain written policies addressing non-discrimination and equal employment opportunity. Employers must provide reasonable accommodations for individuals with disabilities unless it causes significant difficulty or expense.

Pay Equity and Minimum Wage

• Current minimum wage: Utah’s minimum wage is $7.25 per hour, matching the federal minimum wage. The state has maintained this rate since July 24, 2009—16 years with no increase. Utah is one of 20 states that follow the federal minimum wage without establishing an independent state rate.
• Local minimum wages: Unlike most states, several Utah municipalities have established higher local minimum wages, creating a complex wage landscape:
  • Salt Lake City: $10.75 per hour for employers providing health benefits; $12.00 per hour for employers not providing health benefits (as of 2025)
  • Other communities: Various municipalities have enacted higher rates
  • Compliance requirement: Employers must comply with the highest applicable wage where they operate
• Failed legislation: Two significant bills attempting to increase the state minimum wage have failed:
  • HB0549 (2023-2025): Proposed age-based minimum wage system ($10 for under 18; $13 for 18-20; $15 for 21+) with annual CPI adjustments beginning 2027
  • HB205 (2024): Proposed minimum wage increase; rejected in committee

Why no state increase?

Utah has determined that the federal minimum wage remains adequate and has rejected legislative proposals to establish independent state rates.

• Tipped employees (current law): The minimum cash wage for tipped employees is $2.13 per hour. Employers may take a tip credit of up to $5.12 per hour if tips, combined with the base wage, reach at least $7.25 per hour. Employers must ensure tipped workers always earn at least the minimum wage.
• Youth/Training wages (current law):
  • Training wage (workers under 20): $4.25 per hour for their first 90 consecutive calendar days of employment
  • Student minimum wage: $6.16 per hour (85% of minimum) for full-time high school and college students working up to 20 hours per week
  • Workers with disabilities: Employers may pay subminimum wages with U.S. Department of Labor certification
• Overtime: Utah follows federal Fair Labor Standards Act standards—overtime is due at 1.5 times the regular rate for hours worked over 40 per week. Notably, Utah has NO separate state overtime law for private sector employees.
• Exempt employee salary threshold: As of January 1, 2025, the federal salary threshold for exempt employees is $58,656 per year (adjusted from $43,888), effective every three years thereafter.

Utah follows federal equal pay requirements. Employers should retain records demonstrating the basis for any wage differences between employees performing substantially equal work.

Background Checks and Criminal History Rules

Utah does not have a statewide ban-the-box law for private employers. Employers may inquire about an applicant’s criminal history at any point during the hiring process. However, expunged or sealed records require special handling—if an applicant’s criminal record has been expunged or sealed, the applicant may truthfully state that the conviction did not occur.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Utah employers are required to verify the identity and employment eligibility of new hires using Form I-9. The employee must complete Section 1 by their first day of employment. Employers must complete Section 2 within three business days of hire. Forms must be retained for three years after hire or one year after termination, whichever is later.

• E-Verify: Utah does not require private employers to use the federal E-Verify system, though employers may voluntarily use it.

State-Specific Hiring Rules

Utah enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Utah

Utah takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to penalties enforced by the U.S. Department of Labor and state authorities. Violations can result in back wages, liquidated damages (double the unpaid wages), and attorney fees.
• Discrimination Violations: If UALD or EEOC finds that an employer violated anti-discrimination laws, it may order remedies including reinstatement with back pay, compensatory damages, front pay, and attorney fees. Utah law does not cap compensatory damages for discrimination claims.
• Filing timeline: Employees must file discrimination complaints with the UALD within 180 days of the alleged discriminatory act to preserve state-level claims. If filed between 180-300 days, the case is referred to the EEOC for investigation. Federal EEOC claims must be filed within 300 days.
• Employee Lawsuits: Employees can file complaints with the UALD (801-530-6801) or the EEOC, or pursue civil lawsuits following administrative procedures. However, there is no private right of action under Utah state law, so employees must exhaust administrative remedies first.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance, consult the USCIS I-9 Handbook.
• New Hire Reporting to Utah Department of Workforce Services- All new hires and rehires must be reported to the Utah New Hire Reporting Center within 20 days of their hire date. Report online at jobs.utah.gov/employer, by phone at 801-526-9235 or 1-800-222-2857, or by mail/fax using Form DWS-UI 6. Reports should include employee name, address, Social Security number, date of hire; and employer name, address, FEIN.
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to maintain written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff.
• Child Labor Work Permits- Employers must keep files of all work permits for children under 16 employed. Permits must be obtained from the school in which the minor is enrolled.
• Retention of Job Applications and Interview Notes- Utah employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. Records should be kept for at least one year (three years for unemployment insurance records) and made available during audits or investigations.
• Posters and Workplace Notices- Certain notices must be displayed prominently in the workplace, including those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, occupational safety, and employee rights. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees.