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House approves substitute bill to align state pay rules with FLSA, funds liability
Summary
The House approved a substitute to House Bill 326 to align Utah state pay rules with the Federal Fair Labor Standards Act and to appropriate $2 million to cover estimated state liability identified in a federal audit; the bill passed 54–7.
The House voted to pass a substitute to House Bill 326, a measure intended to bring state compensation policies into alignment with the Federal Fair Labor Standards Act (FLSA).
Representative Lyon and other sponsors said a federal audit identified non‑compliance in how some state employees were classified as exempt or nonexempt, creating a potential state liability. The substitute statute sets consistent statewide overtime accrual and compensation rules and includes an appropriation of $2 million to cover the state's liability for two years of pay exposure identified by auditors.
Sponsors described the measure as a 'must‑pass' bill to prevent loss of federal funds or to address accrued liabilities. The House approved the substitute on a recorded vote of 54 to 7 and will forward the bill to the Senate for further consideration.
The measure also directs state finance officers to carry unpaid liability forward if total claims exceed the appropriation and to standardize overtime treatment across agencies.
