01-06 15:04 H.B. 111
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Workers' Compensation Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Anthony E. Loubet
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LONG TITLE
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General Description:
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This bill modifies provisions of the Workers' Compensation Act related to home and
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community based services.
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Highlighted Provisions:
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This bill:
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▸ clarifies the circumstances under which an individual with a disability is the employer of
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an individual providing home and community based services; 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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34A-2-103, as last amended by Laws of Utah 2021, Chapter 286
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 34A-2-103 is amended to read:
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34A-2-103 . Employers enumerated and defined -- Regularly employed --
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Statutory employers -- Exceptions.
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(1)(a) The state, and each county, city, town, and school district in the state are
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considered employers under this chapter and Chapter 3, Utah Occupational Disease
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Act.
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(b) For the purposes of the exclusive remedy in this chapter and Chapter 3, Utah
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Occupational Disease Act, [prescribed] provided in Sections 34A-2-105 and
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34A-3-102, the state is considered to be a single employer and includes any office,
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department, agency, authority, commission, board, institution, hospital, college,
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university, or other instrumentality of the state. H.B. 111 01-06 15:04
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(2)(a) Subject to the other provisions of this section, each person, including each public
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utility and each independent contractor, [who] that regularly employs one or more
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workers or operatives in the same business, or in or about the same establishment,
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under any contract of hire, express or implied, oral or written, is considered an
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employer under this chapter and Chapter 3, Utah Occupational Disease Act.
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(b) As used in this Subsection (2):
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(i) "Independent contractor" means any person engaged in the performance of any
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work for another who, while so engaged, is:
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(A) independent of the employer in all that pertains to the execution of the work;
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(B) not subject to the routine rule or control of the employer;
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(C) engaged only in the performance of a definite job or piece of work; and
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(D) subordinate to the employer only in effecting a result in accordance with the
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employer's design.
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(ii) "Regularly" includes all employments in the usual course of the trade, business,
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profession, or occupation of the employer, whether continuous throughout the
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year or for only a portion of the year.
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(3)(a) The client under a professional employer organization agreement regulated under
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Title 31A, Chapter 40, Professional Employer Organization Licensing Act:
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(i) is considered the employer of a covered employee; and
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(ii) subject to Section 31A-40-209, shall secure workers' compensation benefits for a
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covered employee by complying with Subsection 34A-2-201(1) and commission
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rules.
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(b) The division shall promptly inform the Insurance Department if the division has
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reason to believe that a professional employer organization is not in compliance with
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Subsection 34A-2-201(1) and commission rules.
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(4) A domestic employer who does not employ one employee or more than one employee at
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least 40 hours per week is not considered an employer under this chapter and Chapter 3,
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Utah Occupational Disease Act.
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(5)(a) As used in this Subsection (5):
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(i)(A) "Agricultural employer" means a person who employs agricultural labor as
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defined in Subsections 35A-4-206(1) and (2) and does not include employment
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as provided in Subsection 35A-4-206(3).
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(B) Notwithstanding Subsection (5)(a)(i)(A), only for purposes of determining
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who is a member of the employer's immediate family under Subsection
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(5)(a)(ii), if the agricultural employer is a corporation, partnership, or other
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business entity, "agricultural employer" means an officer, director, or partner
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of the business entity.
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(ii) "Employer's immediate family" means:
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(A) an agricultural employer's:
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(I) spouse;
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(II) grandparent;
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(III) parent;
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(IV) sibling;
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(V) child;
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(VI) grandchild;
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(VII) nephew; or
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(VIII) niece;
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(B) a spouse of any person provided in Subsections (5)(a)(ii)(A)(II) through (VIII);
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or
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(C) an individual who is similar to those listed in Subsection (5)(a)(ii)(A) or (B) as
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defined by rules of the commission.
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(iii) "Nonimmediate family" means a person who is not a member of the employer's
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immediate family.
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(b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
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agricultural employer is not considered an employer of a member of the employer's
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immediate family.
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(c) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
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agricultural employer is not considered an employer of a nonimmediate family
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employee if:
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(i) for the previous calendar year the agricultural employer's total annual payroll for
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all nonimmediate family employees was less than $8,000; or
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(ii)(A) for the previous calendar year the agricultural employer's total annual
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payroll for all nonimmediate family employees was equal to or greater than
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$8,000 but less than $50,000; and
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(B) the agricultural employer maintains insurance that covers job-related injuries
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of the employer's nonimmediate family employees in at least the following
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amounts:
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(I) $300,000 liability insurance, as defined in Section 31A-1-301; and
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(II) $5,000 for health care benefits similar to benefits under health care
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insurance as defined in Section 31A-1-301.
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(d) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
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agricultural employer is considered an employer of a nonimmediate family employee
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if:
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(i) for the previous calendar year the agricultural employer's total annual payroll for
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all nonimmediate family employees is equal to or greater than $50,000; or
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(ii)(A) for the previous year the agricultural employer's total payroll for
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nonimmediate family employees was equal to or exceeds $8,000 but is less
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than $50,000; and
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(B) the agricultural employer fails to maintain the insurance required under
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Subsection (5)(c)(ii)(B).
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(6) An employer of agricultural laborers or domestic servants who is not considered an
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employer under this chapter and Chapter 3, Utah Occupational Disease Act, may come
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under this chapter and Chapter 3, Utah Occupational Disease Act, by complying with:
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(a) this chapter and Chapter 3, Utah Occupational Disease Act; and
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(b) the rules of the commission.
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(7)(a)(i) As used in this Subsection (7)(a), "employer" includes any of the following
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persons that procures work to be done by a contractor notwithstanding whether or
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not the person directly employs a person:
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(A) a sole proprietorship;
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(B) a corporation;
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(C) a partnership;
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(D) a limited liability company; or
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(E) a person similar to one described in Subsections (7)(a)(i)(A) through (D).
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(ii) If an employer procures any work to be done wholly or in part for the employer
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by a contractor over whose work the employer retains supervision or control, and
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this work is a part or process in the trade or business of the employer, the
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contractor, all persons employed by the contractor, all subcontractors under the
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contractor, and all persons employed by any of these subcontractors, are
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considered employees of the original employer for the purposes of this chapter
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and Chapter 3, Utah Occupational Disease Act.
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(b) Any person who is engaged in constructing, improving, repairing, or remodeling a
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residence that the person owns or is in the process of acquiring as the person's
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personal residence may not be considered an employee or employer solely by
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operation of Subsection (7)(a).
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(c) A partner in a partnership or an owner of a sole proprietorship is not considered an
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employee under Subsection (7)(a) if the employer who procures work to be done by
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the partnership or sole proprietorship obtains and relies on either:
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(i) a valid certification of the partnership's or sole proprietorship's compliance with
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Section 34A-2-201 indicating that the partnership or sole proprietorship secured
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the payment of workers' compensation benefits pursuant to Section 34A-2-201; or
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(ii) if a partnership or sole proprietorship with no employees other than a partner of
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the partnership or owner of the sole proprietorship, a workers' compensation
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coverage waiver issued pursuant to Part 10, Workers' Compensation Coverage
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Waivers Act, stating that:
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(A) the partnership or sole proprietorship is customarily engaged in an
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independently established trade, occupation, profession, or business; and
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(B) the partner or owner personally waives the partner's or owner's entitlement to
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the benefits of this chapter and Chapter 3, Utah Occupational Disease Act, in
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the operation of the partnership or sole proprietorship.
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(d) A director or officer of a corporation is not considered an employee under
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Subsection (7)(a) if the director or officer is excluded from coverage under
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Subsection 34A-2-104(4).
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(e) A contractor or subcontractor is not an employee of the employer under Subsection
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(7)(a), if the employer who procures work to be done by the contractor or
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subcontractor obtains and relies on either:
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(i) a valid certification of the contractor's or subcontractor's compliance with Section
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34A-2-201; or
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(ii) if a partnership, corporation, or sole proprietorship with no employees other than
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a partner of the partnership, officer of the corporation, or owner of the sole
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proprietorship, a workers' compensation coverage waiver issued pursuant to Part
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10, Workers' Compensation Coverage Waivers Act, stating that:
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(A) the partnership, corporation, or sole proprietorship is customarily engaged in
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an independently established trade, occupation, profession, or business; and
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(B) the partner, corporate officer, or owner personally waives the partner's,
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corporate officer's, or owner's entitlement to the benefits of this chapter and
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Chapter 3, Utah Occupational Disease Act, in the operation of the
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partnership's, corporation's, or sole proprietorship's enterprise under a contract
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of hire for services.
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(f)(i) For purposes of this Subsection (7)(f), "eligible employer" means a person who:
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(A) is an employer; and
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(B) procures work to be done wholly or in part for the employer by a contractor,
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including:
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(I) all persons employed by the contractor;
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(II) all subcontractors under the contractor; and
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(III) all persons employed by any of these subcontractors.
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(ii) Notwithstanding the other provisions in this Subsection (7), if the conditions of
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Subsection (7)(f)(iii) are met, an eligible employer is considered an employer for
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purposes of Section 34A-2-105 of the contractor, subcontractor, and all persons
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employed by the contractor or subcontractor described in Subsection (7)(f)(i)(B).
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(iii) Subsection (7)(f)(ii) applies if the eligible employer:
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(A) under Subsection (7)(a) is liable for and pays workers' compensation benefits
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as an original employer under Subsection (7)(a) because the contractor or
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subcontractor fails to comply with Section 34A-2-201;
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(B)(I) secures, in accordance with Section 34A-2-201, the payment of workers'
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compensation coverage for the contractor or subcontractor;
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(II) procures work to be done that is part or process of the trade or business of
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the eligible employer; and
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(III) does the following with regard to a written workplace accident and injury
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reduction program that meets the requirements of Subsection
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34A-2-111(3)(d):
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(Aa) adopts the workplace accident and injury reduction program;
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(Bb) posts the workplace accident and injury reduction program at the work
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site at which the eligible employer procures work; and
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(Cc) enforces the workplace accident and injury reduction program
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according to the terms of the workplace accident and injury reduction
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program; or
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(C)(I) obtains and relies on:
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(Aa) a valid certification described in Subsection (7)(c)(i) or (7)(e)(i);
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(Bb) a workers' compensation coverage waiver described in Subsection
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(7)(c)(ii) or (7)(e)(ii); or
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(Cc) proof that a director or officer is excluded from coverage under
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Subsection 34A-2-104(4);
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(II) is liable under Subsection (7)(a) for the payment of workers' compensation
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benefits if the contractor or subcontractor fails to comply with Section
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34A-2-201;
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(III) procures work to be done that is part or process in the trade or business of
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the eligible employer; and
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(IV) does the following with regard to a written workplace accident and injury
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reduction program that meets the requirements of Subsection
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34A-2-111(3)(d):
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(Aa) adopts the workplace accident and injury reduction program;
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(Bb) posts the workplace accident and injury reduction program at the work
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site at which the eligible employer procures work; and
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(Cc) enforces the workplace accident and injury reduction program
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according to the terms of the workplace accident and injury reduction
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program.
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(8)(a) For purposes of this Subsection (8), "unincorporated entity" means an entity
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organized or doing business in the state that is not:
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(i) an individual;
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(ii) a corporation; or
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(iii) publicly traded.
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(b) For purposes of this chapter and Chapter 3, Utah Occupational Disease Act, an
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unincorporated entity that is required to be licensed under Title 58, Chapter 55, Utah
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Construction Trades Licensing Act, is presumed to be the employer of each
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individual who holds, directly or indirectly, an ownership interest in the
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unincorporated entity. Notwithstanding Subsection (7)(c) and Subsection
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34A-2-104(3), the unincorporated entity shall provide the individual who holds the
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ownership interest workers' compensation coverage under this chapter and Chapter 3,
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Utah Occupational Disease Act, unless the presumption is rebutted under Subsection
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(8)(c).
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(c) Pursuant to rules made by the commission in accordance with Title 63G, Chapter 3,
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Utah Administrative Rulemaking Act, an unincorporated entity may rebut the
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presumption under Subsection (8)(b) for an individual by establishing by clear and
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convincing evidence that the individual:
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(i) is an active manager of the unincorporated entity;
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(ii) directly or indirectly holds at least an 8% ownership interest in the unincorporated
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entity; or
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(iii) is not subject to supervision or control in the performance of work by:
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(A) the unincorporated entity; or
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(B) a person with whom the unincorporated entity contracts.
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(d) As part of the rules made under Subsection (8)(c), the commission may define:
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(i) "active manager";
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(ii) "directly or indirectly holds at least an 8% ownership interest"; and
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(iii) "subject to supervision or control in the performance of work."
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(9)(a) As used in this Subsection (9), "home and community based services" means one
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or more of the following services provided to an individual with a disability or to the
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individual's family that helps prevent the individual with a disability from being
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placed in a more restrictive setting:
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(i) respite care;
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(ii) skilled nursing;
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(iii) nursing assistant services;
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(iv) home health aide services;
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(v) personal care and attendant services;
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(vi) other in-home care, such as support for the daily activities of the individual with
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a disability;
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(vii) specialized in-home training for the individual with a disability or a family
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member of the individual with a disability;
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(viii) specialized in-home support, coordination, and other supported living services;
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and
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(ix) [other home and community based services ] any other in-home service that is
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unique to the individual with a disability or the family of the individual with a
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disability[ that help prevent the individual with a disability from being placed in a
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more restrictive setting].
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(b)(i) Notwithstanding Subsection (4) and subject to Subsection (9)(c), an individual
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with a disability or designated representative of the individual with a disability is
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considered an employer under this chapter and Chapter 3, Utah Occupational
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Disease Act, of an individual who provides home and community based services
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if the individual with a disability or designated representative of the individual
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with a disability:
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[(i)] (A) employs the individual to provide home and community based services
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for seven hours per week or more; and
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[(ii)] (B) pays the individual providing the home and community based services
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from state or federal money received by the individual with a disability or
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designated representative of the individual with a disability to fund home and
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community based services, including through a person designated by the
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Secretary of the Treasury in accordance with Section 3504, Internal Revenue
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Code, as a fiduciary, agent, or other person who has the control, receipt,
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custody, or disposal of, or pays the wages of, the individual providing the
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home and community based services.
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(ii) For purposes of Subsection (9)(b)(i), an entity is not a designated representative
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of an individual with a disability solely because the entity, in the course of
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business, connects the individual with a disability or the individual's family with
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an individual who provides home and community based services.
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(c) The state and federal money received by an individual with a disability or designated
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representative of an individual with a disability shall include the cost of the workers'
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compensation coverage required by this Subsection (9) in addition to the money
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necessary to fund the home and community based services that the individual with a
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disability or family of the individual with a disability is eligible to receive so that the
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home and community based services are not reduced in order to pay for the workers'
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compensation coverage required by this Subsection (9).
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(10)(a) For purposes of this Subsection (10), "federal executive agency" means an
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executive agency, as defined in 5 U.S.C. Sec. 105, of the federal government.
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(b) For purposes of determining whether two or more persons are considered joint
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employers under this chapter or Chapter 3, Utah Occupational Disease Act, an
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administrative ruling of a federal executive agency may not be considered a generally
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applicable law unless that administrative ruling is determined to be generally
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applicable by a court of law, or adopted by statute or rule.
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(11)(a) As used in this Subsection (11):
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(i) "Franchise" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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(ii) "Franchisee" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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(iii) "Franchisor" means the same as that term is defined in 16 C.F.R. Sec. 436.1.
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(b) For purposes of this chapter, a franchisor is not considered to be an employer of:
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(i) a franchisee; or
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(ii) a franchisee's employee.
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(c) With respect to a specific claim for relief under this chapter made by a franchisee or
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a franchisee's employee, this Subsection (11) does not apply to a franchisor under a
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franchise that exercises a type or degree of control over the franchisee or the
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franchisee's employee not customarily exercised by a franchisor for the purpose of
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protecting the franchisor's trademarks and brand.
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Section 2. Effective date.
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This bill takes effect on May 7, 2025.
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