FREQUENTLY ASKED QUESTIONS
Workers Compensation Insurance – Waivers
In Utah, employers are required to provide workers' compensation coverage to its employees. Workers' compensation coverage pays for the medical costs and a portion of the lost wages of an employee injured while working on behalf of their employer.
In Utah, certain individuals are allowed to waive their rights to workers' compensation coverage by obtaining a Workers' Compensation Coverage Waiver (WCCW). The following entity categories may be eligible for the waiver:
- Sole Proprietorships with no employee other than the owner.
- Partnerships with no employee other than the partners. Limited Liability Companies are considered Partnerships and, as such, the members of an LLC may be eligible for a waiver. Limited Liability Companies that are required to be licensed under Utah law Title 58-Chapter 55, Utah Construction Trades Licensing Act, are required to procure and maintain workers’ compensation coverage for its members and are not eligible for a waiver as stated in S.B. 35 of the 2011 Utah General Legislative Session.
- Director and/or officers of a corporation.
- Independent Contractors with no employees who fall into any of the above categories.
An independent contractor is defined as:
A person engaged in the performance of any work for another whom, while so engaged, is:
- Independent of the employer in all that pertains to the execution of the work;
- Not subject to the routine rule or control of the employer;
- Engaged only in the performance of a definite job or piece of work; and
- Subordinate to the employer only in effecting a result in accordance with the employer's design.
Eligible parties may apply for a WCCW by completing an application form, providing the required documentation as outlined below, and paying a nonrefundable $50 processing fee.
A copy of two or more of the following:
- Valid business license,
- A license to engage in an occupation or profession,
- Documentation of an active liability insurance policy that covers the business entities activities,
- The business entity's federal or state income tax return that shows business income for the complete taxable year that immediately precedes the day on which the entity submits the information.
A copy of A, B, C, or D in Option 1 and a copy of two or more of the following:
- Proof of a bank account for the business entity,
- Proof that the business entity has the following:
- a telephone number
- a physical location, or
- An advertisement of services in a newspaper of general circulation or telephone directory showing the business entity's:
- name and
- contact information
You may pay the $50 non-refundable waiver processing fee online after the online application has been filled out.
Be sure to enter your waiver application number and your business name EXACTLY as it was entered on the application.
You may also pay with credit/debit card, cash (in our office only), check, money order, or cashier’s check.
The status of the waiver may be verified online.
Be sure to enter your waiver number and the business name EXACTLY as it was entered on the issued waiver document.
Pursuant to Utah Code Annotated §63G-4-203, adjudicative proceedings will be conducted informally. You have the right to file an appeal of the decision, or request a hearing with an administrative law judge to review the denial or revocation, in writing within 30 days from the date of the Notice. Included in the appeal, please reference the waiver number above, state the reason(s) why the waiver should not have been denied/revoked, and provide the appropriate documentation to support the reason(s). Please mail, fax, or hand-deliver the appeal or hearing request and any related documents to the Utah Labor Commission, Industrial Accidents Division, with attention to the Presiding Officer.