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Employers

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.

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 or complete the form to send a message.