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Minimum Wage in Utah: $7.25 and the Law That Caps It at the Federal Rate

The minimum wage in Utah is $7.25 an hour as of October 2026, the same as the federal rate. Utah's own law says the state minimum wage set by its Labor Commission may not exceed the federal minimum wage, so the commission can't set a Utah rate above $7.25 while that rule stands.

That cap is the thing almost nobody mentions. Most states treat the federal rate as a floor and build above it. Utah Code section 34-40-103 does the opposite and uses it as a ceiling for the commission's rate. This page draws on that statute, the employee rights poster published by the Utah Department of Workforce Services, and the U.S. Department of Labor's state, tipped and payday tables, all read in October 2026.

Utah pay rates at a glance

WorkerHourly rate (as of October 2026)
Most employees$7.25
Tipped employees, minimum cash wage$2.13
Maximum tip credit$5.12
Under 20, first 90 consecutive calendar days$4.25

The tipped and youth figures are the federal ones. The Utah poster repeats that employers of tipped employees must pay at least $2.13 an hour in cash if they claim a tip credit, and must make up the difference when tips fall short. Employees under 20 may be paid $4.25 an hour during their first 90 consecutive calendar days with an employer.

Why Utah's rate stays at $7.25

Utah Code 34-40-103 set the state minimum at $3.35 an hour, then $3.80 from April 1, 1990. After July 1, 1990 it handed the job to the Labor Commission, which may set the minimum wage by rule. The same section says that rate may not exceed the federal minimum wage in effect at the time. The commission can also set separate rates for minors.

The U.S. Department of Labor's state table adds a second point: Utah's law excludes from coverage any job that's already subject to the federal Fair Labor Standards Act. So for most Utah businesses, it's the federal law that sets the $7.25.

How Utah wants you to pay

Utah's Payment of Wages Act is where the state rules get stricter than the federal ones. The Utah poster sets out the timing rules every employer should know.

  1. Pay employees at least twice a month.
  2. Pay an employee who quits their final wages by the next regular payday.
  3. Pay an employee who's involuntarily terminated all final wages within 24 hours of separation.
  4. Staff on a yearly salary can be paid monthly, according to the U.S. Department of Labor's payday table.

That 24-hour rule for a firing is far tighter than many states allow. My final paycheck guide compares it with the rest of the country.

Overtime in Utah

Overtime follows the federal law: at least one and a half times the regular rate for all hours over 40 in a workweek for non-exempt staff. There's no daily overtime rule. My overtime laws guide explains which salaried roles are exempt.

Youth work rules on the Utah poster

The poster also repeats the federal child labour limits. An employee must be at least 16 for most non-farm jobs and 18 for jobs declared hazardous. Youths aged 14 and 15 may work outside school hours for up to 3 hours on a school day and 18 hours in a school week, or 8 hours on a non-school day and 40 hours in a non-school week. Their work can't start before 7 a.m. or end after 7 p.m., except from June 1 through Labor Day, when evening hours extend to 9 p.m.

Utah's rate history

Year (1 January)Utah rate
2007$5.15
2008$5.85
2009$6.55
2010 onward$7.25
As of October 2026$7.25

Utah against its neighbours

StateBasic minimum wage (as of October 2026)
Utah$7.25
Idaho$7.25
Nevada$12.00
Arizona$15.15
Colorado$15.16

Utah and Idaho pay the federal floor, while Colorado and Arizona are more than double it. If you employ people on both sides of the Colorado line, my Colorado minimum wage guide covers the higher rate.

Who can be paid less than $7.25 in Utah

The federal rules on the Utah poster allow a few narrow groups to be paid below the standard rate. Each one comes with its own conditions.

  • Employees under 20, at $4.25 an hour for their first 90 consecutive calendar days with an employer.
  • Tipped employees, at a $2.13 cash wage when tips bring them to $7.25.
  • Certain full-time students, student learners, apprentices and workers with disabilities, but only under special certificates.
  • Certain occupations and establishments that are exempt from the minimum wage altogether.

If none of those fit, the answer is $7.25 an hour. The poster also notes that some state laws give workers greater protections, and employers must comply with both.

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Is your Utah business under federal law?

Almost certainly. The federal Fair Labor Standards Act covers an enterprise with employees in interstate commerce and annual gross sales of more than $500,000, and it covers schools, hospitals, health care facilities and public agencies regardless of size. Because Utah's state law excludes jobs the federal law already covers, the state rules mostly matter for the smallest local businesses.

My verdict

Utah's $7.25 isn't an oversight that'll be fixed next year. The state's own statute caps the commission's rate at the federal level. What deserves your attention is the Payment of Wages Act: twice-monthly paydays, and final pay within 24 hours when you let someone go.

Frequently asked questions

What is the minimum wage in Utah?

It's $7.25 an hour as of October 2026, the same as the federal rate.

Can Utah raise its minimum wage above the federal rate?

Not under the current law. Utah Code 34-40-103 says the commission's minimum wage may not exceed the federal minimum wage.

What is the tipped minimum wage in Utah?

Employers claiming a tip credit must pay at least $2.13 an hour in cash, with tips bringing the total to $7.25.

How often must Utah employers pay?

At least twice a month. Staff on a yearly salary can be paid monthly.

When is a final paycheck due in Utah?

Within 24 hours for an involuntary termination, and by the next regular payday for someone who quits.

Does Utah have daily overtime?

No. Overtime is at least time and a half after 40 hours in a workweek.

Who enforces wage payment rules in Utah?

The Employment Standards Bureau of the Utah Labor Commission administers the Utah Payment of Wages Act.

Can Utah employers pay students less than $7.25?

Only certain full-time students, student learners, apprentices and workers with disabilities, and only under special certificates.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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