Like many other states across America, such as Oklahoma, Texas, Virginia, Maryland, Idaho and Indiana, Utah increases the state minimum wage when the federal minimum wage increases. Therefore, on July 24, 2009, when the federal minimum increased by 70 cents from $6.55 to $7.25 per hour, the Utah minimum wage increased to match the federal rate.
Unlike these other states whose laws simply mandate that they adopt the federal minimum as their own, Utah’s only requires the state Labor Commission to review the rate when the federal minimum changes.
For Utah to adopt the federal minimum wage as its state minimum, an administrative action msut take place requesting the change. This action is undertaken by the Utah Labor Commission.
In 2007, the federal Fair Minimum Wage Act of 2007 set out to increase the federal minimum wage with three annual increases. Each increase was to be 70 cents beginning in 2007 and ending in 2009. The federal minimum began at $5.15 per hour, increasing to $5.85 in 2007, then to $6.55 in 2008 and finally to $7.25 per hour in 2009.
When the Fair Minimum Wage Act of 2007 was signed into law, Utah’s minimum wage was also $5.15 per hour. The Utah Labor Commission decided to review the federal Act and follow the example by increasing the state minimum in the same three tiers.
Due to review and internal debate, though, the first increase from $5.15 to $5.85 per hour wasn’t implemented until September 8, 2007. At that time, the Labor Commission the minimum wage has not been increased for 10 years. The second increase to $6.55 per hour occurred along with the federal increase on July 24, 2008, and the third increase to $7.25 per hour is slated to occur with the federal increase, too, on July 24, 2009.
This third increase is the last planned increase for Utah’s minimum wage. Future increases will take place only if the Utah Labor Commission takes administrative action to do so.
