Federal labor laws regulate most aspects of employment and apply to nearly every business owner with employees. The federal government gives states power to make their own labor laws for things like minimum wage, termination pay, paid leave, and others. If you are based in Utah but have employees that live and work in other states, you need to be up to date on Utah’s labor laws as well as the labor laws for every state you have an employee working in. Here are some of the common state labor laws that you should be aware of:
Minimum Wage Laws
Though the federal minimum wage is $7.25 per hour, many states have minimum wage set higher. California, Washington, Montana, Oregon, Nevada, and Arizona are all states that have a higher minimum wage. If you have any employees outside of the state you’re based in, you must pay those employees the minimum wage specified by the state they live in.
Termination Pay
Final pay after termination has different requirements based on the state you and your employees work in. Some states don’t have a set deadline for giving employees a final check. Other states require employers to provide the terminated employee with their final paycheck within a certain number of days or even immediately after termination. Check this handout for more information on state final pay.
Paid Leave
While federal law doesn’t require employers to offer paid leave, some states have additional rules and requirements for employers. Most states only require that employers follow their paid leave policies if they choose to have them. However, there are exceptions so make sure to check the laws in all states where you have employees.
Keeping up with state employment laws can be extremely difficult. If you have questions about state employment laws consult the state department of labor here or contact Helpside at humanresources@helpside.com.