SB 213: Utah Payment of Wages Act Statute of Limitations - Utah

Substitute #3 → Substitute #4 · 5 edits

MODERATE

Substitute #4 simplifies the Utah Payment of Wages Act by removing complex exceptions based on claim amounts and consolidating the statute of limitations into a single two-year period for all employees. This replaces the previous system, which allowed a four-year filing window for high-value claims and a one-year window for executives or small claims. The change aims to create a uniform timeline for filing wage disputes regardless of the employee's role or the specific amount owed.

Scope change

The bill's scope changed from a tiered system based on claim value and employee status to a uniform system applying to all employees and all claim amounts.

ELIGIBILITY

Removed the distinction between 'executive' and non-executive employees regarding the statute of limitations, previously allowing executives only one year to file a claim.

Removed the $10,000 threshold that previously triggered a four-year statute of limitations for larger wage claims.

TIMELINE

Changed the statute of limitations for all wage claims to a uniform two-year period from the date wages were earned.

REQUIREMENT

Simplified the rules for when an employee can bypass administrative hearings and go directly to court, removing the complex aggregation rules for multiple claims.

TECHNICAL

Updated formatting and numbering in the definitions section to align with standard legislative style.

Substitute #2 → Substitute #3 · 4 edits

MODERATE

This bill updates the Utah Payment of Wages Act to clarify how long employees have to sue for unpaid wages. It establishes a four-year deadline for claims against standard employers and a one-year deadline for claims against executives, while also refining the rules for when employees can bypass administrative processes to go straight to court.

Scope change

The bill clarifies the statute of limitations based on whether the defendant is an 'executive' or a standard employer, and adjusts the thresholds for when an employee can file a lawsuit directly without first going through the Labor Commission.

TIMELINE

Establishes a four-year statute of limitations for wage claims against employers that are not executives, and a one-year statute of limitations for claims against executives.

REQUIREMENT

Refines the conditions under which an employee can file a court action directly without exhausting administrative remedies, specifically regarding claim amounts exceeding $10,000 or combined claims by multiple employees.

DEFINITION

Updates the definition of 'Executive' to include specific roles like officers, LLC managers, and partners, which determines which one-year statute of limitations applies.

TECHNICAL

Reorganizes the bill's text structure and numbering to align with the state's legislative formatting standards.

Substitute #1 → Substitute #2 · 5 edits

MODERATE

This bill expands the Utah Payment of Wages Act by adding new definitions for 'executive' and 'unincorporated entity' to clarify who is liable for unpaid wages. It also changes the statute of limitations, extending the time to sue an employer from three years to four years, while reducing the time to sue an executive from three years to one year. Additionally, the bill removes the $10,000 threshold that previously allowed employees to bypass administrative hearings and go straight to court for small claims.

Scope change

The bill broadens the scope of the act by explicitly defining 'executives' and 'unincorporated entities' as potential employers, and it alters the monetary threshold for bypassing administrative remedies.

DEFINITION

Added specific definitions for 'executive' (officers, managers, partners) and 'unincorporated entity' to clarify liability.

TIMELINE

Changed the statute of limitations for suing an employer from three years to four years.

Established a one-year statute of limitations for suing an executive.

ELIGIBILITY

Removed the $10,000 threshold that previously required employees to exhaust administrative remedies before filing court claims.

REQUIREMENT

Added rules regarding joint employers, franchise relationships, and procedures for unincorporated entities to rebut presumptions of employment.

Amended 2/25/2026 13:02:973 → Substitute #1 · 3 edits

MINOR

This bill amends the Utah Payment of Wages Act to clarify and expand when employees can bypass administrative hearings and go straight to court. It introduces a new three-year statute of limitations for filing wage claims, replacing the previous one-year rule. Additionally, it adds a specific provision allowing multiple employees to combine their claims to meet the $10,000 threshold required to skip administrative remedies.

Scope change

The bill expands the scope of private lawsuits by adding a three-year filing deadline and clarifying rules for multiple employees filing combined claims.

TIMELINE

Added a new subsection (4) establishing a three-year statute of limitations for filing wage claims, extending the previous one-year deadline.

ELIGIBILITY

Modified the conditions for bypassing administrative remedies by adding a new option (2)(c) that allows multiple employees to combine their wage claims to exceed the $10,000 threshold.

REQUIREMENT

Revised the introductory text of subsection (2) to explicitly state that an employee may file in court without exhausting administrative remedies under specific conditions.

Amended 3/6/2026 16:03:978 → Amended 2/25/2026 13:02:973 · 4 edits

MODERATE

This bill simplifies the Utah Payment of Wages Act by removing the complex administrative exhaustion requirement for small wage claims (under $10,000) and establishing a uniform one-year statute of limitations for all lawsuits. Previously, employees with small claims had to go through a lengthy administrative process before suing, but now they can file directly in court. The bill also clarifies that the statute of limitations applies to both employers and executives.

Scope change

The bill narrows the scope of the administrative exhaustion requirement, allowing employees with claims under $10,000 to bypass administrative remedies and sue directly in court. It also removes the distinction between executives and non-executives regarding the statute of limitations, applying a one-year limit to both.

REQUIREMENT

Eliminated the requirement for employees with wage claims of $10,000 or less to exhaust administrative remedies before filing a lawsuit.

TIMELINE

Changed the statute of limitations from a split system (four years for employers, one year for executives) to a single one-year limit for all defendants.

Updated the effective date of the bill from May 5, 2027, to May 6, 2026.

DEFINITION

Removed extensive definitions regarding unincorporated entities, joint employers, and franchise relationships that were present in the previous version.

Amended Excerpts 2/25/2026 13:02:973 → Amended 3/6/2026 16:03:978 · 4 edits

MODERATE

This bill replaces the previous version of the Utah Payment of Wages Act, which allowed employees to bypass administrative hearings for claims over $10,000. The new version establishes a four-year statute of limitations for employees and a one-year statute of limitations for executives, while removing the option to skip administrative remedies entirely. It also updates definitions to clarify who counts as an employer versus an executive and adds specific rules regarding unincorporated entities and franchise relationships.

Scope change

The bill significantly alters the legal process for wage claims by eliminating the ability to file court actions without first exhausting administrative remedies, regardless of the claim amount. It also introduces a distinction in the time limit for filing lawsuits based on whether the plaintiff is an employee or an executive.

TIMELINE

Changed the statute of limitations for filing wage lawsuits to four years for employees and one year for executives.

REQUIREMENT

Removed the provision allowing employees to file court actions without first exhausting administrative remedies.

Deleted the threshold-based exception that allowed claims over $10,000 to bypass administrative processes.

DEFINITION

Updated definitions to explicitly distinguish between 'employers' and 'executives' and clarified rules for unincorporated entities and franchises.

Amended Excerpts 3/6/2026 16:03:978 → Amended Excerpts 2/25/2026 13:02:973 · 3 edits

MINOR

The bill's amendment date was updated from March 6 to February 25, 2026, reflecting a shift from House Floor to House Committee status. The most significant policy change involves the timeline for filing wage claims: employees can now file a court action within one year of earning wages without first exhausting administrative remedies, whereas the previous version required compliance with administrative rules before seeking judicial review.

Scope change

The scope of judicial access for wage claims was expanded by allowing employees to bypass administrative exhaustion procedures for claims filed within one year of earning wages.

TIMELINE

Added a one-year statute of limitations for filing wage claims in court, allowing employees to proceed without first exhausting administrative remedies.

REQUIREMENT

Removed the mandatory requirement for employees to comply with administrative rules and file petitions for judicial review before taking action in court.

TECHNICAL

Updated the document header to reflect the new amendment date and changed the status from House Floor Amendments to House Committee Amendments.

Introduced → Amended Excerpts 3/6/2026 16:03:978 · 2 edits

MINOR

The bill was amended to clarify the administrative process for wage claims, specifically requiring employees to file for judicial review under a specific administrative rule section before suing in court. It also refined the criteria for bypassing administrative remedies, maintaining the $10,000 threshold for direct court access but adding specific conditions for combining multiple claims or employees to exceed that limit.

Scope change

The scope of the bill's applicability was refined by adding specific procedural requirements for judicial review and clarifying the conditions under which an employee can bypass administrative steps.

REQUIREMENT

Added a specific requirement for employees to file for judicial review under Section 63G-4-402 after exhausting administrative remedies.

ELIGIBILITY

Clarified and structured the conditions under which an employee can file a wage claim directly in court without first exhausting administrative remedies, specifically regarding claims over $10,000 and aggregated claims.

Utah Payment of Wages Act Statute of Limitations

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