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Utah Minimum Wage Update

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 I’m the owner of a

Utah company that is covered by the state minimum wage, not the federal minimum wage. I understand that the federal minimum wage recently increased from $5.15 per hour to $5.85 per hour. But won’t the

Utah state minimum wage stay at $5.15?

No. Although the Utah minimum wage is currently $5.15 per hour, it is scheduled to increase on September 8, 2007 to $5.85.

Utah is one of a number of states where the state minimum wage is pegged to the federal minimum wage. In some states, such as Oklahoma and

Texas, the state minimum wage changes at the same time as the federal minimum wage.

Utah is in a unique situation, because the increase in the state minimum wage is an administrative move. That means that the timing of the increase in the state minimum wage is a little different than the increase in other states. So, although the federal increase occurred on 7/24/07, the state increase won’t take place until 9/08/07.

As an employer with a Utah company, it’s important that you know you’re required by law to change your minimum wage posters to reflect the changes. The updated posters are mandated for both the federal and the state posters.

The President signed the Fair Minimum Wage Act of 2007 on May 25. The wage rate goes up 70 cents an hour over three years, starting with the first one that became effective on July 24, for a total of $2.10 an hour. Each wage hike is effective on July 24. That represents a 41% increase for minimum wage employees. But keep in mind that $5.85 an hour – the first increase – is lower than the rate in 28 states, as well as the District of Columbia, Guam, and the Virgin Islands. 

A number of states are being proactive about the minimum wage.

Kentucky is one of the states that passed legislation boosting its minimum wage in advance of the federal increase. It joined New Mexico, New Hampshire, and

Illinois in passing laws by the spring of 2007, before the federal hike became law. In others, including Virginia, Oklahoma, and

Texas, the state rate is pegged to the national standard, meaning increases are automatic when the federal rate goes up.