Utah mirrors federal tipped wage at $2.13 per hour.
Utah aligns its tipped employee minimum wage with the federal standard of $2.13 per hour. This rate is applicable provided the combination of the cash wage and tips received by the employee equals or exceeds the state's minimum wage of $7.25 per hour. Employers must ensure compliance by informing tipped employees of these provisions in writing before claiming any tip credit.
Utah Tipped Wage
Ensuring tipped employees meet the state minimum wage through a combination of direct wages and tips, aligning with federal standards.
What those rules do as a Utah shift is created.
Teambridge automatically calculates the proper cash wage for tipped employees in Utah, ensuring that all state and federal requirements are met, and alerting you to any potential shortfalls or compliance risks.
Tipped Wage Calculation
The system automatically sets the cash wage for eligible tipped employees at $2.13 per hour, the federal minimum for tipped workers, which Utah adopts.
Tip Credit Monitoring
Teambridge continuously monitors the combined cash wage and reported tips to ensure the employee's total compensation meets or exceeds the Utah state minimum wage of $7.25 per hour.
Notification for Shortfalls
If an employee's total earnings (cash wage + tips) fall below the $7.25 state minimum, Teambridge will flag the shift and prompt for an adjustment to cover the difference, ensuring no wage violations occur.
Compliance, on autopilot.
Teambridge manages the complexities of Utah's wage and hour laws, so you don't have to.
Utah's tipped wage aligns with federal standards, requiring a $2.13 cash wage.
Utah law dictates that employers may pay a reduced cash wage to employees who customarily and regularly receive tips, provided that the combination of the cash wage and tips equals at least the state minimum wage of $7.25 per hour. This practice is known as taking a "tip credit."
Utah Code § 34-40-103 — Labor Commission rulemaking explicitly capped at federal floor
The Utah Labor Commission shall establish rules regarding minimum wages. Such rules shall not establish a minimum wage greater than the federal minimum wage as provided in 29 U.S.C. Section 206(a)(1). For employees who customarily and regularly receive tips, the employer may take a tip credit against the minimum wage provided the cash wage paid by the employer is not less than $2.13 per hour and the employee is informed of the tip credit provisions.
Tipped Employee Definition and Eligibility
An employee is considered a "tipped employee" if they customarily and regularly receive more than $30 per month in tips. This threshold is critical for determining eligibility for the reduced cash wage. Employers must ensure that employees meet this criterion before applying the tip credit.
Employer Notification Requirements
Before an employer can take a tip credit, they must inform their tipped employees of the tip credit provisions. This notification must be provided in writing and include the amount of the direct cash wage paid, the amount of the tip credit claimed, and that all tips received by the employee are to be retained by the employee (except for valid tip pooling arrangements). Failure to provide this notice can result in the employer being unable to claim the tip credit and potentially owing the employee the full minimum wage for all hours worked.
Teambridge ensures Utah tipped wage compliance, automatically.
Teambridge integrates Utah's tipped wage laws directly into your payroll and timekeeping, eliminating manual calculations and reducing compliance risk. From initial setup to ongoing monitoring, we handle the intricacies of state-specific wage rules.
Automatic Tipped Employee Setup
When onboarding new employees designated as tipped, Teambridge automatically configures their cash wage to $2.13/hour in compliance with Utah and federal law. The system prompts for confirmation that the required written notification of tip credit provisions has been provided.
Real-time Tip Credit Validation
For each shift, Teambridge tracks the employee's reported tips against the $2.13 cash wage. It verifies that the combined total meets the $7.25 state minimum wage, flagging any instances where the tip credit might lead to a shortfall.
Automated Wage Adjustments
If an employee's tips plus cash wage do not reach the $7.25 minimum, Teambridge automatically calculates the necessary employer contribution to cover the difference, ensuring full compliance without manual intervention. This adjustment is clearly documented for audit purposes.
Comprehensive Compliance Records
Teambridge maintains detailed records of cash wages, reported tips, and any tip credit adjustments, providing an auditable trail to demonstrate compliance with Utah's tipped wage laws and federal regulations.