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The Compliance Section ensures that employers are compliant with the Utah Workers’ Compensation Act, Utah Code Ann. §34A-2-101 et seq. by providing workers’ compensation coverage for their employees.
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Employers' Guide to Workers' Compensation
Workers’ compensation is a no-fault insurance system that provides medical and disability benefits.
Workers' Compensation Coverage Waivers
Individuals with no employees and who hire out their services to a hiring employer may be considered “statutory employees.”
Self-Insurance
Employer’s may pay workers’ compensation benefits directly to an employee without needing to have a workers’ compensation policy.
Extra-Territorial Certificates
Extra-territorial coverage is defined as coverage extended to Utah employees who work outside of Utah.
Corporate Exclusion
Corporations, which have no employees except directors and/or officers, may file a notice to exclude themselves from workers’ compensation benefits.
Penalties
All employers in the state are monitored to ensure that they are complying with the state requirement to provide workers’ compensation insurance for their employees.
Unlawful Interference
It is against Utah Law for an employer to “impede or diminish an employee’s efforts to make a claim or receive worker’s compensation benefits.”
Corporate Exclusion
Utah Senate Bill 45 passed in the 2013 legislative session amends the Workers’ Compensation Act, to allow corporations which have no employees except directors and/or officers, to file a notice with the Labor Commission to exclude themselves from workers’ compensation benefits. This exclusion is limited to no more than five directors/officers.
It should be noted that corporations that contract out their work, for example construction contractors, are not eligible for this exclusion filing, those corporations should apply for a workers’ compensation coverage waiver.
If the corporation has a workers’ compensation policy in place, director/officer exclusion is reported as an endorsement to the workers’ compensation policy.
Eligible corporations may fill out the Corporation Directors and Officers Workers’ Compensation Exclusion Form, and submit by fax (801) 530-6804 or wccw@utah.gov.
Applies only to registered Utah Corporations and no other business types.
Penalties
The Industrial Accidents Division monitors all employers in the state to ensure that they are complying with the state requirement to provide workers’ compensation insurance for their employees. Employers suspected to be non-compliant will be investigated.
If an employer fails to maintain workers compensation coverage, the consequences can be severe. They include:
- Penalties of at least $1,000;
- Injunctions prohibiting continued business operations; and
- Loss of the protection of the “exclusive remedy,” which means that the employer and its employees can be sued in court for damages by an injured worker. It is much less expensive to obtain workers’ compensation insurance.
Unlawful Interference
It is against Utah Law for an employer to “impede or diminish an employee’s efforts to make a claim or receive worker’s compensation benefits,” Utah Code Ann. §34A-2-114. Employers found to unlawfully interfere with an employee’s workers’ compensation claim are subject to fines of up to $5,000.
For more information about Unlawful Interference, please call (801) 530-6800.