12-17 15:45 H.B. 24
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Limitations on Liability Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nelson T. Abbott
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LONG TITLE
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Committee Note:
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The Judiciary Interim Committee recommended this bill.
6 Legislative Vote:10 voting for0 voting against7 absent
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General Description:
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This bill addresses the limitation on the liability of an employer for an employee convicted
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or adjudicated of an offense.
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Highlighted Provisions:
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This bill:
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▸ repeals a sunset date for a statute addressing the liability of an employer for an employee
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convicted or adjudicated of an offense;
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▸ defines terms;
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▸ modifies the definition of "employer";
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▸ limits the protections that are provided to an employer in a cause of action regarding an
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employee who was previously convicted or adjudicated of an offense; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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63I-1-278, as last amended by Laws of Utah 2024, Third Special Session, Chapter 5
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78B-4-518, as enacted by Laws of Utah 2022, Chapter 423
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 63I-1-278 is amended to read:
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63I-1-278 . Repeal dates: Title 78A and Title 78B.
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(1) Subsection 78A-7-106(7), regarding the transfer of a criminal action involving a H.B. 24 12-17 15:45
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domestic violence offense from the justice court to the district court, is repealed July 1,
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2029.
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(2) Section 78B-3-421, Arbitration agreements, is repealed July 1, 2029.
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[(3) Section 78B-4-518, Limitation on liability of employer for an employee convicted of
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an offense, is repealed July 1, 2025.]
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[(4)] (3) Title 78B, Chapter 6, Part 2, Alternative Dispute Resolution Act, is repealed July 1,
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2026.
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[(5)] (4) Section 78B-22-805, Interdisciplinary Parental Representation Pilot Program, is
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repealed December 31, 2026.
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Section 2. Section 78B-4-518 is amended to read:
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78B-4-518 . Limitation on liability of employer for employee convicted or
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adjudicated of offense.
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(1) As used in this section:
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(a) "Adjudicated" means a court has entered:
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(i) a finding that the facts in a delinquency petition or criminal information alleging
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an individual committed an offense when the individual was younger than 18
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years old have been proved; or
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(ii) an admission or plea of no contest upon a delinquency petition or criminal
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information alleging an individual committed an offense when the individual was
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younger than 18 years old.
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(b) "Alcohol" means the same as that term is defined in Section 34-38-2.
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(c) "Convicted" means:
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(i) having entered an plea of guilty, a plea of no contest, or a plea of guilty with a
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mental condition; or
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(ii) having received a judgment of guilty or a judgment of guilty with a mental
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condition.
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(d) "Drugs" means the same as that term is defined in Section 34-38-2.
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[(a)] (e)(i) [Except as provided in Subsection (1)(a)(ii), "employee"] "Employee"
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means an individual whom an employer hired for compensation to perform
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services.
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(ii) "Employee" does not include an independent contractor as defined in Subsection
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34A-2-103(2)(b).
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[(b)] (f) "Employer" means a person, including the state and any political subdivision of
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the state, that employs one or more employees and is engaged in an industry or
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business related to:
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(i) automotive repair and maintenance;
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(ii) construction;
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(iii) culinary arts;
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(iv) manufacturing;
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(v) oil, gas, or mining;
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(vi) retail sale of goods[ or services]; or
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(vii) transportation of freight, merchandise, or other property by a commercial
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vehicle.
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(g) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
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(h) "Negligent hiring" means the failure to exercise reasonable care in hiring or retaining
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an employee.
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(i) "Sexual offense" means an offense described in:
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(i) Title 76, Chapter 5, Part 4, Sexual Offenses;
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(ii) Title 76, Chapter 5b, Sexual Exploitation Act;
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(iii) Section 76-7-102, incest;
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(iv) Section 76-9-702, lewdness; or
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(v) Section 76-9-702.1, sexual battery.
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(j) "Substance abuse offense" means:
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(i) an offense described in Section 41-6a-502 for driving under the influence of
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alcohol, drugs, or a combination of both or with specified or unsafe blood alcohol
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concentration; or
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(ii) an offense described in Section 58-37-8.
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(k) "Violent offense" means an offense involving:
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(i) violence or physical harm;
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(ii) a threat of violence or physical harm; or
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(iii) an attempt to commit an offense involving violence or physical harm.
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(2) A cause of action may not be brought against an employer for [negligently] the negligent
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hiring of an employee that is based solely on evidence that the employee has been
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previously convicted or adjudicated in this state or in another jurisdiction of an offense.
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(3) Subsection (2) does not preclude a cause of action for negligent hiring of an employee if
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the employer knew, or should have known, about the employee's prior conviction or
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adjudication and due to the employee's prior conviction or adjudication:
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(a) the employer violated state or federal law by hiring or continuing to employ the
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employee; or
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(b) the employer's hiring of the employee constitutes willful misconduct or gross
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negligence.
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(4) The protections provided to an employer under this section do not apply in a cause of
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action concerning:
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(a) the misuse of funds or property of a person other than the employer if:
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[(a)] (i) on the date that the employee was hired by the employer, the employee had
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been previously convicted or adjudication of an offense that includes fraud or the
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misuse of funds as an element of the offense; and
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[(b)] (ii) it was foreseeable that the position for which the employee was hired would
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involve duties in managing funds or property[.] ;
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(b) a sexual offense, or a violent offense, committed by an employee if:
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(i) the employee was previously convicted or adjudicated in this state or another
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jurisdiction of a sexual offense or violent offense;
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(ii) the position for which the employee was hired brings the employee into contact
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with another individual; and
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(iii) the employee would present a serious threat of harm to another individual due to
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the employee's prior conviction or adjudication;
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(c) an offense committed by an employee involving a motor vehicle if:
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(i) the employee operates a motor vehicle as part of the employee's employment; and
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(ii) the employee was previously convicted or adjudicated in this state or another
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jurisdiction of an offense involving a motor vehicle; or
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(d) unless the employer instituted a reasonable drug or alcohol testing program to ensure
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the sobriety of the employee, an offense committed by an employee involving a
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substance abuse offense if the employee was previously convicted or adjudicated in
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this state or another jurisdiction of an offense involving drugs or alcohol.
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(5) In determining whether a drug or alcohol testing program is reasonable under
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Subsection (4)(d), the court shall consider:
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(a) the length of time that the employee was sober before the commission of the
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substance abuse offense;
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(b) whether the employer has given the employee access to:
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(i) alcohol or drugs; or
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(ii) any equipment that would place another individual at risk of harm; and
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(c) any other factor that the court considers relevant.
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[(5)] (6) Section 63G-7-301 does not waive any immunity provided under this section for an
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employer that is a governmental entity or an employee of a governmental entity as those
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terms are defined in Section 63G-7-102.
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[(6)] (7) This section does not:
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(a) create a cause of action; or
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(b) expand an existing cause of action.
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Section 3. Effective date.
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This bill takes effect on May 7, 2025.
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