The popularity of remote work has permanently changed the hiring landscape. Instead of being physically tethered to a job, employees are free to work from anywhere in the world. Employers have their pick of candidates from a much larger talent pool, and everyone enjoys the convenience and flexibility. However, hiring out of state employees in Utah can create some complex employment law issues.
Employers who fail to research each new state’s employment laws and standards could find themselves in trouble with the Department of Labor. Fines and other penalties can be levied in each state. Unfortunately, this can be a time-consuming and expensive proposition.
SixFifty has developed multistate employer tools to simplify the process. Instead of researching every state’s individual employment laws, you can automatically generate what you need. Here’s what the out-of-state hiring process might look like.
Scenario 1: Employee works from home in another state
Before remote work became possible, employees moving out of state usually needed to find new employment. Today, employers can retain their best employees, even when they move out of state. It’s important to remember that the out-of-state employee is governed by the new state’s laws—even if your company is headquartered in Texas, for example, Utah employment laws apply to anyone living and working there.
Scenario 2: Hiring out-of-state employees in Utah
Alternatively, you might want to expand your candidate search nationwide. When you hire a candidate from Utah, again, the state’s employment laws apply to that person. Because employment laws can vary significantly from state to state, Utah’s protections may look very different from your home state. It’s your responsibility to ensure that you comply with all state laws. This can become complicated when you hire more than one out-of-state employee at a time.
Multistate Employer Registration Factors to Consider
Whatever scenario applies to your hiring decision, your employer obligations remain the same. You must research the new state’s employment laws, then comply with the new rules and processes. Otherwise, you could rack up penalties and fines.
SixFifty has identified five core areas of focus for multistate employers. We’ve done the research for you. Our multistate employment tools help you through the major steps, cutting down on the time and expense it takes to onboard new hires.
1. Utah Employment Registration
First, you will need to establish a presence in Utah. Your company must register to do business within Utah. Then you must report the new hire to the Department of Workforce Services within 20 days and register for or update your unemployment insurance and workers’ compensation policies.
- Obtain a registered agent
- Register to do business in Utah
- Report new hire to the Department of Workforce Services
- Register for unemployment insurance
- Report unemployment insurance account to payroll provider
- Obtain workers’ compensation coverage or update the policy
2. Utah Tax Registration
Next, your company must fulfill your tax obligations to the new state, even if you’re headquartered elsewhere. This includes registering for an income tax withholding account, calculating and completing the state income tax withholding form and registering for a sales tax license within the state.
- Register for income tax withholding account
- Obtain the completed state income tax withholding form from the employee
- Register for a sales tax license or permit
3. Utah Employment Policies
Utah has seven state-specific employment policies which must be included in your employee handbook. Keep in mind that not every policy applies to every business: some apply to minors only, while another is only for companies with 15 or more employees. You must review your handbook and update or add policies as necessary.
- Review employee handbook for compliance
- Update policies or add new leave policies as needed
4. Utah Required Employment Policies (April 2023)
- Immigration Law Compliance (15 Employees)
- Jury Duty Leave
- Meal and Rest Breaks (minors only)
- Military Service Leave
- Outside Employment Policy
- Voting Leave
- Witness Duty and Subpoena Leave
5. Utah Employment Implications
Next, you must review Utah employment implications. This includes ensuring that employees are paid the state minimum wage ($7.25 per hour) and that your payroll and overtime practices comply with state law. You’ll also need to review your non-compete provisions, insurance coverage and any applicable COVID-19 laws.
- Ensure non-compete provisions comply with Utah law
- Confirm the employee is paid at least the minimum wage
- Review the applicable overtime laws
- Confirm the payroll practices meet the payment frequency standards in Utah
- Consider whether insurance extends coverage to employees in Utah
- Consider COVID-19 laws that affect the employee
6. Utah Signage
Finally, Utah requires that employers distribute five different types of signage. While the state hasn’t determined how to do this for exclusively remote employees, federal law suggests putting the signage on the company website, in an easily accessible web folder or in the company intranet will satisfy this requirement.
- Post or distribute required signage
Simplify Multistate Compliance with SixFifty
The process of maintaining compliance can be complex and extremely nuanced for companies unfamiliar with Utah employment laws and standards. It’s why SixFifty has compiled an extremely useful tool for businesses hiring out-of-state employees in Utah. To simplify the process of hiring out-of-state employees in Utah or supporting remote employees on-the-move, check out our 50 State Hiring Kit.