(1)  As used in this chapter:

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Terms Used In Utah Code 34-28-2

  • Commission: means the Labor Commission. See Utah Code 34-28-2
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Division: means the Division of Antidiscrimination and Labor. See Utah Code 34-28-2
  • Employer: means the same as that term is defined in 29 U. See Utah Code 34-28-2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Federal executive agency: means an executive agency, as defined in 5 U. See Utah Code 34-28-2
  • Franchise: means the same as that term is defined in 16 C. See Utah Code 34-28-2
  • Franchisee: means the same as that term is defined in 16 C. See Utah Code 34-28-2
  • Franchisor: means the same as that term is defined in 16 C. See Utah Code 34-28-2
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • Person: means :Utah Code 68-3-12.5
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • Statute: A law passed by a legislature.
  • Unincorporated entity: means an entity organized or doing business in the state that is not:
(i) an individual;
(ii) a corporation; or
(iii) publicly traded. See Utah Code 34-28-2
  • Wages: means the amounts due the employee for labor or services, whether the amount is fixed or ascertained on a time, task, piece, commission basis or other method of calculating such amount. See Utah Code 34-28-2
  • (a)  “Commission” means the Labor Commission.

    (b)  “Division” means the Division of Antidiscrimination and Labor.

    (c) 

    (i)  “Employer” means the same as that term is defined in 29 U.S.C. § 203.

    (ii)  “Employer” does not include an individual who is not:

    (A)  an officer;

    (B)  a manager of a manager-managed limited liability company;

    (C)  a member of a member-managed limited liability company;

    (D)  a general partner of a limited partnership; or

    (E)  a partner of a partnership.

    (d)  “Federal executive agency” means an executive agency, as defined in 5 U.S.C. § 105, of the federal government.

    (e)  “Franchise” means the same as that term is defined in 16 C.F.R. § 436.1.

    (f)  “Franchisee” means the same as that term is defined in 16 C.F.R. § 436.1.

    (g)  “Franchisor” means the same as that term is defined in 16 C.F.R. § 436.1.

    (h)  “Unincorporated entity” means an entity organized or doing business in the state that is not:

    (i)  an individual;

    (ii)  a corporation; or

    (iii)  publicly traded.

    (i)  “Wages” means the amounts due the employee for labor or services, whether the amount is fixed or ascertained on a time, task, piece, commission basis or other method of calculating such amount.

    (2) 

    (a)  For purposes of this chapter, an unincorporated entity that is required to be licensed under Title 58, Chapter 55, Utah Construction Trades Licensing Act, is presumed to be the employer of each individual who, directly or indirectly, holds an ownership interest in the unincorporated entity.

    (b)  Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, an unincorporated entity may rebut the presumption under Subsection (2)(a) for an individual by establishing by clear and convincing evidence that the individual:

    (i)  is an active manager of the unincorporated entity;

    (ii)  directly or indirectly holds at least an 8% ownership interest in the unincorporated entity; or

    (iii)  is not subject to supervision or control in the performance of work by:

    (A)  the unincorporated entity; or

    (B)  a person with whom the unincorporated entity contracts.

    (c)  As part of the rules made under Subsection (2)(b), the commission may define:

    (i)  “active manager”;

    (ii)  “directly or indirectly holds at least an 8% ownership interest”; and

    (iii)  “subject to supervision or control in the performance of work.”

    (d)  The commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, may establish a procedure, consistent with Section 34-28-7, under which an unincorporated entity may seek approval of a mutual agreement to pay wages on non-regular paydays.

    (3)  For purposes of determining whether two or more persons are considered joint employers under this chapter, an administrative ruling of a federal executive agency may not be considered a generally applicable law unless that administrative ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.

    (4) 

    (a)  For purposes of this chapter, a franchisor is not considered to be an employer of:

    (i)  a franchisee; or

    (ii)  a franchisee’s employee.

    (b)  With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee’s employee, this Subsection (4) does not apply to a franchisor under a franchise that exercises a type or degree of control over the franchisee or the franchisee’s employee not customarily exercised by a franchisor for the purpose of protecting the franchisor’s trademarks and brand.

    Amended by Chapter 386, 2018 General Session