Under the 2011 General Legislative Session, S.B. 35, the State of Utah allows certain individuals to waive their rights to workers compensation coverage. There is a process that must be followed to apply for a workers compensation waiver and only a specific group of entity types may apply.
Those entities who may apply for a Utah Workers Compensation Coverage Waiver (WCCW) are:
- Sole Proprietors or business owners operating as an Individual; who have no other employees and who operate the business by themselves;
- Partnerships; like sole proprietors, who have no other employees other than the partners and who operate the business by themselves;
- Limited Liability Companies; considered partnerships, members of a LLC may be eligible for a waiver with an exception! LLC’s that are required to be licensed under Utah’s Construction Trades Licensing Act must secure and maintain workers comp coverage for its members. They are not allowed waivers.
- Corporate Officers and Directors
- Certain Independent Contractors; Independent contractors who operate as one of the above listed entities, with no employees, may be eligible for a waiver. Utah provides a definition of an independent contractor as a person who performs work for another that is separate or independent of the employer in all things that pertain to the work; that is not subject to control of the employer; that is only engaged in a specific job or specific work; and is only subject to the employer in regards to completing a effective result as to the employers design.
Those who qualify may apply to the State of Utah for a Workers Compensation Coverage Waiver (WCCW) by completing and submitting an application. Utah requires a $50 nonrefundable processing fee be paid when submitting the application.
Use this link to the Utah Labor Commission’s page about Workers Compensation Coverage Waivers. At their sight you will find more information about WCCW’s, a link for completing the waiver application online and a list of the additional information you will need to submit along with the application.
Hope this helps you out! Thanks