Utah employers usually have workers comp coverage. Does yours?

When exactly is workers compensation required in Utah?

If you’ve been hurt at work, you might be wondering if your employer is covered—and whether they’re capable of paying for your medical bills.

Fortunately, most Utah businesses are required to have workers compensation coverage. Let us explain.

Who has to have workers compensation in Utah?

Every Utah employer must have workers compensation insurance for all of its employees—with few exceptions.

How do I know if my employer has workers comp insurance or not?

The state of Utah requires all employers to post a notice stating that they are in compliance with state workers comp laws.

Employers must post notices in easy-to-see locations at their place of business.

What if I’m injured while working out of state?

If you’re injured out of state while working for a Utah-based company, you are still subject to the same workers comp laws as if you were hurt in Utah.

Are there exceptions to Utah’s workers compensation requirements?

You might be wondering what size of business in Utah is required to carry workers comp insurance.

Workers comp insurance waivers are available to certain businesses. In all cases, the business must apply for a waiver.

Directors or officers of a corporation

Corporations with no contracted work (and with no employees besides directors and officers) may be eligible for workers comp exclusion.

Sole proprietorships

As long as the sole proprietor is the only employee, they may be eligible for a workers comp waiver.

Partnerships

Partnerships with no employees (besides the partners) may be eligible for a workers comp insurance waiver.

Limited liability companies

LLCs are treated as partnerships. Therefore, members of the limited liability company may be eligible for a workers compensation insurance waiver.

Independent contractors

Independent contractors with no employees who fall into any of the categories above may be eligible for a waiver.

Self-insurance

Employers have a right to pay workers compensation benefits directly to their employees without carrying a workers comp policy. However, they must meet several criteria. At a glance, the employer must:

• Have been operating for at least five years
• Have a net worth of at least $10,000,000
• Deposit cash or acquire a surety bond with the state treasurer
• Carry excess coverage in case of claims in excess of the annual cap

What is the penalty for not carrying workers comp insurance in Utah?

Utah’s Industrial Accidents Division monitors employers for workers comp insurance compliance. Businesses suspected of noncompliance will be investigated. Failing to carry workers compensation coverage for all employees can result in:

• Fines starting at $1000
• Injunctions halting business operations
• Loss of “exclusive remedy” protection, meaning the employer could be sued by an injured worker for damages

Can I file a lawsuit against my employer if they don’t have workers compensation insurance?

Utah is a no-fault state when it comes to workers compensation insurance.

Injured workers may seek compensation through their employer’s workers comp insurance, without the need to file a lawsuit. This removes the burden of proving negligence for your workplace injury.

But what happens if you’re injured at work when your employer does not carry workers comp insurance?

In this situation, your employer will lose protection of the “exclusive remedy” that shields them from lawsuits regarding workplace injuries.

Even without workers compensation insurance, you may still have options to seek compensation.

That means you could file a personal injury lawsuit against your employer to recover damages instead.

Does Utah have a law against retaliation when an employee files a workers comp claim?

Yes. In Utah, it is illegal for an employer to stop you from making a workers compensation claim or receiving benefits. Employers who violate this law can be fined up to $5000.

Do I need a workers compensation attorney?

Has your claim been denied? Are you facing retaliation from your employer? Are you unsure whether you’re covered by workers compensation laws, or whether your employer has insurance?

For easy answers to these difficult questions, contact us immediately. Davis & Sanchez has a history of helping hurt workers across Utah recover the compensation they deserve.