34-28-3 - Regular paydays -- Currency or negotiable checks required -- Deposit in financial institution -- Statement of total deductions -- Unlawful withholding or diversion of wages.
34-28-3. Regular paydays -- Currency or negotiable checks required -- Deposit infinancial institution -- Statement of total deductions -- Unlawful withholding or diversionof wages.
(1) (a) An employer shall pay the wages earned by an employee at regular intervals, butin periods no longer than semimonthly on days to be designated in advance by the employer asthe regular payday.
(b) An employer shall pay for services rendered during a pay period within 10 days afterthe close of that pay period.
(c) If a payday falls on a Saturday, Sunday, or legal holiday, an employer shall pay wagesearned during the pay period on the day preceding the Saturday, Sunday, or legal holiday.
(d) If an employer hires an employee on a yearly salary basis, the employer may pay theemployee on a monthly basis by paying on or before the seventh of the month following themonth for which services are rendered.
(e) Wages shall be paid in full to an employee:
(i) in lawful money of the United States;
(ii) by a check or draft on a depository institution, as defined in Section 7-1-103, that isconvertible into cash on demand at full face value; or
(iii) by electronic transfer to the depository institution designated by the employee.
(2) An employer may not issue in payment of wages due or as an advance on wages to beearned for services performed or to be performed within this state an order, check, or draftunless:
(a) it is negotiable and payable in cash, on demand, without discount, at a depositoryinstitution; and
(b) the name and address of the depository institution appears on the instrument.
(3) (a) Except as provided in Subsection (3)(b), an employee may refuse to have theemployee's wages deposited by electronic transfer under Subsection (1)(e)(iii) by filing a writtenrequest with the employer.
(b) An employee may not refuse to have the employee's wages deposited by electronictransfer under Subsection (3)(a) if:
(i) for the calendar year preceding the pay period for which the employee is being paid,the employer's federal employment tax deposits are equal to or in excess of $250,000; and
(ii) at least two-thirds of the employees of the employer have their wages deposited byelectronic transfer.
(c) An employer may not designate a particular depository institution for the exclusivepayment or deposit of a check or draft for wages.
(4) If a deduction is made from the wages paid, the employer shall, on each regularpayday, furnish the employee with a statement showing the total amount of each deduction.
(5) An employer may not withhold or divert part of an employee's wages unless:
(a) the employer is required to withhold or divert the wages by:
(i) court order; or
(ii) state or federal law;
(b) the employee expressly authorizes the deduction in writing;
(c) the employer presents evidence that in the opinion of a hearing officer or anadministrative law judge would warrant an offset; or
(d) subject to Subsection (7), the employer withholds or diverts the wages:
(i) as a contribution of the employee under a contract or plan that is:
(A) described in Section 401(k), 403(b), 408, 408A, or 457, Internal Revenue Code; and
(B) established by the employer; and
(ii) the contract or plan described in Subsection (5)(d)(i) provides that an employee'scompensation is reduced by a specified contribution:
(A) under the contract or plan; and
(B) that is made for the employee unless the employee affirmatively elects:
(I) to not have a reduction made as a contribution by the employee under the contract orplan; or
(II) to have a different amount be contributed by the employee under the contract or plan.
(6) An employer may not require an employee to rebate, refund, offset, or return a part ofthe wage, salary, or compensation to be paid to the employee except as provided in Subsection(5).
(7) (a) An employer shall notify an employee in writing of the right to make an electionunder Subsection (5)(d).
(b) An employee may make an election described in Subsection (5)(d) at any time byproviding the employer written notice of the election.
(c) An employer shall modify or terminate the withholding or diversion described inSubsection (5)(d) beginning with a pay period that begins no later than 30 days following the dayon which the employee provides the employer the written notice described in Subsection (7)(b).
(8) An employer is not prohibited from pursuing legitimate claims of damages, offsets,or recoupments in a civil action against an employee.
Amended by Chapter 254, 2008 General Session