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Utah

July 16, 2015

Author: DeadreDiggs/Wednesday, July 15, 2015/Categories: Utah

Executive Summary

 

Overview:  Under New Law the 24-Hour Period for Payment of Final Wages Includes Options for Employers

Effective Date: May 12, 2015


Coverage:  All  Clients with Employees working in Utah


Action Required: Please make sure to timely process final payroll for all voluntary and involuntarily terminated employees.


The Details

Under the current Utah statute (Utah Code Ann. § 34-28-5), “whenever an employer separates an employee from the employer's payroll the unpaid wages of the employee become due immediately, and the employer shall pay the wages to the employee within 24 hours of the time of separation at the specified place of payment.” Upon the failure to pay wages due to an involuntarily terminated employee within 24 hours of written demand, the wages (at the same rate that the employee received at the time of separation) must continue from the date of demand until paid, for a period of up to 60 days.  

As a result of the enactment of Senate Bill 272 (S.B. 272), effective May 12, 2015, the 24 hour time to period to pay will be considered met if one of the following three options are exercised by the employer:

1. The employer mails the wages to the employee and the envelope that contains the wages is postmarked with a date that is no more than one day after the day on which the employer separates the employee from the employer's payroll.

2. Within 24 hours after the employer separates the employee from the employer's payroll, the employer, initiates a direct deposit of the wages into the employee's account. 3. The employer hand-delivers the wages to the employee within 24 hours of termination. It is important note that an employee who voluntarily resigns must be paid by the next regular payday of such employee. 

Practical Impact

Please make sure to timely process final payroll for all voluntary and involuntarily terminated employees.

ADP is committed to helping you meet your compliance challenges. For additional information about this or any other Human Resources compliance issue, please contact your HR Business Partner. 


This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is not rendering legal advice.  




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