Termination Policy

Can you tell me what the legal aspect of terminating an employee in Utah is. Do we have to pay them 24 hours after we terminate or do a layoff?


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  • Utah Code Sec. 34-28-5 applies to this issue. In most instances, Utah law requires that whenever an employer separates an employee from the payroll, unpaid wages must be paid within 24 hours of the separation. If they aren't, there are some significant penalties. For example, if a written demand for payment is made, wages will continue despite the separation for up to 60 days, plus penalties in a civil action.

    If an employee doesn't have a written employment agreement and the employee resigns, as opposed to being involuntarily separated, then the wages are due on the next regularly scheduled payday.

    Let me know if you have any other questions.

    Darryl Lee
    Wood Crapo LLC
    Editors of Utah Employment Law Letter

  • Here in N.M. we have five working days to get a final check out and that timeframe works well to assure that all hours are paid, deductions taken, etc. You-all should get that law changed.

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