No. 35362 (Amendment): Section R600-3-1. Authority and Scope

(Amendment)

DAR File No.: 35362
Filed: 10/14/2011 11:07:45 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This amendment implements H.B. 3003, enacted during the 2011 Legislature's 3rd special session. Specifically, for purposes of workers' compensation, the amendment allows unincorporated entities that are construction licensees to rebut the presumption that their workers are employees.

Summary of the rule or change:

The amendment incorporates references to the Utah Workers' Compensation Act into the rule's existing provisions, which define terms and establish procedures by which an unincorporated entity can rebut the presumption that its workers are employees.

State statutory or constitutional authorization for this rule:

• Subsection 34-28-2(2)
• Section 34A-1-104
• Subsection 34A-6-103(2)
• Subsection 34A-5-102(2)
• Subsection 34A-2-103(8)(c)

Anticipated cost or savings to:

the state budget:

The amendment will not increase or decrease the Labor Commission's enforcement/administration costs, nor will it impact the State's cost of providing workers' compensation benefits to its employees. Consequently, the amendment will have no impact on the state budget.

local governments:

Because local governments are not among the class of business entities that are subject to the proposed amendment, the amendment will have no impact on such governments.

small businesses:

The proposed amendment establishes standards and procedures by which an unincorporated entity licensed to perform construction can rebut the presumption that its workers are employees. This will allow some unincorporated entities to qualify for workers' compensation coverage waivers and avoid the expense of workers' compensation insurance. The amount of savings depends upon the particular circumstances of each unincorporated entity.

persons other than small businesses, businesses, or local governmental entities:

As a practical matter, it is unlikely that persons other than small businesses can satisfy statutory requirements for proving that their workers are not employees. Consequently, the Commission does not anticipate that the proposed amendment will result in any appreciable affect on persons other than small businesses.

Compliance costs for affected persons:

The proposed rule's definitions and procedures do not impose any compliance costs on affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

The proposed amendment deals with the ability of an unincorporated entity/construction licensee to demonstrate that its workers are not "employees" under Utah's workers' compensation system. The amendment's definitions and procedures should render these proceedings simpler and more efficient for all the participants and for the Commission. Consequently, the Commission does not anticipate that the proposed rule will have any negative fiscal impact on businesses.

Sherrie Hayashi, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Labor Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Alan Hennebold at the above address, by phone at 801-530-6937, by FAX at 801-530-6390, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

12/01/2011

This rule may become effective on:

12/08/2011

Authorized by:

Sherrie Hayashi, Commissioner

RULE TEXT

R600. Labor Commission, Administration.

R600-3. Definitions Applicable to Construction Licensees.

R600-3-1. Authority and Scope.

A. The Commission enacts this rule pursuant to authority granted by 34-28-2(2), 34A-2-103(8)9c), 34A-5-102(2) and 34A-6-103(2).

B. This rule defines terms and establishes procedures by which an unincorporated entity that is a construction licensee may rebut its status as an employer for purposes of Title 34, Chapter 28, Payment of Wages; Title 34A, Chapter 2, Workers' Compensation Act; Title 34A, Chapter 5, Utah Antidiscrimination Act[,]; and Title 34A, Chapter 6, Utah Occupational Safety and Health Act.

 

KEY: labor commission, unincorporated entity, construction licensees

Date of Enactment or Last Substantive Amendment: [September 21, ]2011

Authorizing, and Implemented or Interpreted Law: 34A-1-104

 

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