Workers’ Compensation Coverage Waivers
In Utah, individuals with no employees and who hire out their services to a hiring employer may be considered “statutory employees.” These individuals are allowed to waive their rights to workers’ compensation coverage by obtaining a Workers’ Compensation Coverage Waiver (WCCW).
Am I Eligible For A Waiver?
The following entity categories may be eligible for the waiver:
- Sole Proprietorships with no employee other than the owner.
- Partnerships with no employees other than the partners.
- Limited Liability Companies are treated as Partnerships and, as such, the members of an LLC may be eligible for a waiver.
Note: An LLC that is required to be licensed under Utah Construction Trades Licensing Act, Utah Code Ann. §58-55-101 et seq. is required to procure and maintain workers’ compensation coverage for its members and is not eligible for a waiver as stated in Utah State Bill 35 of the 2011 Utah General Legislative Session. However, the LLC may be eligible for a waiver if certain conditions are met.
- Director and/or officers of a corporation. Corporations that do not contract their work and have no employees except directors and/or officers can file a notice to exclude themselves from workers’ compensation benefits. This exclusion is limited to no more than five directors/officers. Please see our Corporate Exclusion section for additional information.
- Independent Contractors who fall into any of the above categories, with no employees. Please note that 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. Utah Code Ann. §34A-2-103(2)(b).
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.
How To Apply
The web application allows the user to upload the required documents in PDF, TIFF(TIF), GIF & JPEG(JPG) formats and make an online credit card payment. Applicants also may print the posted application and submit via mail, fax (801) 526-9628, or email to WCCW@utah.gov.
Option 1- Provide a copy two of the following:
- A valid business license.
Example: A copy of the actual, active business license which is issued by a city or country.
- A license to engage in an occupational or profession.
Example: Active license issues by DOPL or Commercial Driver’s License
- Documentation of an active liability insurance policy that covers the business entities activities.
Example: Current certificate of insurance or current declaration page.
- 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 info.
Example: Schedule C, Form 1065, Form 1120 (depending on business type) from the previous year’s income tax return.
Option 2- A copy of one document from Option 1 above and two of the following:
- Proof of a bank account for the business entity.
Example: Bank statement, voided check or a signed letter from a bank representative.
- Proof that the business entity has the following:
- A telephone number
- A physical location
Example: Phone bill in the name of the business.
- An advertisement of services showing the business entity’s name and contact information.
- In a newspaper of general circulation
- In a telephone directory
- On a website or social media
- In a trade magazine
Example: Copy of a recent newspaper, phone directory, or magazine advertisement; or a screenshot of an online or magazine advertisement (Online ad should be listed on the page of a reputable source)
Note: An individual who owns or leases a motor vehicle to a motor carrier and personally operates the motor vehicle under an independent contractor agreement (truck driver/owner operator driver), must also provide, in addition to the supporting documents listed above, proof that the individual driver is covered by occupational accident insurance with coverage and benefit limits indicated in Utah Code Ann. §34A-2-104.
The Labor Commission may investigate a business entity to determine whether the business entity validly elects to not cover an owner, partner, or corporate officer or director as an employee under a workers’ compensation policy.
If the Labor Commission determines that a business entity’s election is invalid, the Labor Commission may deny the waiver application. If the Labor Commission approves the waiver and if the business becomes ineligible during the one year term, the Labor Commission may revoke the waiver.