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 Commission's sole authority to regulate attorney fees comes from Section 34A-1- 309. As such, the provisions of the Utah Administrative Code that allow the Commission to regulate attorney fees, including the payment of attorney fees, need to be removed as they conflict with the Court's decision. Subsection R612-200-2(B) specifically references the statue and administrative rule the Court found to be unconstitutional. Subsection R612-200-2(B) requires the issuance of a separate check for attorney fees to an injured worker's attorney in an amount approved or ordered by the Commission. The rule also prohibits two-party checks issued jointly to an attorney and the injured worker. The Commission lacks the authority to require a separate check for an injured worker's attorney and to approve or order the amount of the check. The Commission also lacks the authority to prohibit checks issued jointly to an attorney and the injured worker. Relevant portions of Subsection R612-200-2(A)(3) also place the Commission in violation of the decision in that the rule requires payments to be made directly and solely to injured workers. This rule would likely interfere with agreements between injured workers and their attorneys regarding the payment of attorney fees.