Justification


Regular rulemaking procedures would place the agency in violation of federal or state law.

Justification: The Utah Supreme Court issued its decision in Injured Workers Assoc. of Utah v. State of Utah, 2016 UT 21, on May 18, 2016. The Court found Utah Code Section 34A-1- 309, the statutory provision that required the Utah Labor Commission to regulate attorney fees in workers' compensation cases, to be unconstitutional. The Court also found Subsection R602-2-4(C)(3), the administrative rule section that governs and regulates the payment of attorney fees, to be unconstitutional. The section places the Commission in violation of the Court's decision and will likely confuse practitioners, injured workers, employers, and insurance carriers. Moreover, all of Section R602-2-4 should be removed on an emergency basis, not merely Subsection R602-2-4(C)(3). The rule governs the payment of attorney fees and costs. The Commission's sole authority to regulate attorney fees was contained in Utah Code Section 34A-1- 309. Inasmuch as the statute has been found to be unconstitutional, the Commission lacks the authority to enforce the remaining provisions of the section. Also, the Commission lacks the authority to regulate or enforce the payment of costs.