34A-2-419. Agreements in addition to compensation and benefits.
(1) (a) Subject to the approval of the division, any employer securing the payment of
workers' compensation benefits for its employees under Section 34A-2-201 may enter into or
continue any agreement with the employer's employees to provide compensation or other benefits
in addition to the compensation and other benefits provided by this chapter or Chapter 3, Utah
Occupational Disease Act.
(b) An agreement may not be approved if it requires contributions from the employees,
unless it confers benefits in addition to those provided under this chapter or Chapter 3, Utah
Occupational Disease Act, at least commensurate with the contributions.
(c) An agreement for additional benefits may be terminated by the division if:
(i) it appears that the agreement is not fairly administered;
(ii) its operation discloses defects threatening its solvency; or
(iii) for any substantial reason it fails to accomplish the purposes of this chapter or
Chapter 3, Utah Occupational Disease Act.
(d) If the agreement is terminated, the division shall determine the proper distribution of
any remaining assets.
(e) The termination under Subsection (1)(c) becomes a final order of the commission
effective 30 days from the date the division terminates the agreement, unless within the 30 days
either the employer or employee files an application for hearing with the Division of Adjudication
in accordance with Part 8, Adjudication. The application for hearing may contest:
(i) the recommendation to terminate the agreement;
(ii) the distribution of remaining assets after termination; or
(iii) both the recommendation to terminate and the distribution of remaining assets.
(2) (a) Any employer who makes a deduction from the wages or salary of any employee
to pay for the statutory benefits of this chapter or Chapter 3, Utah Occupational Disease Act, is
guilty of a class A misdemeanor.
(b) Subject to the supervision of the division, nothing in this chapter or Chapter 3, Utah
Occupational Disease Act, may be construed as preventing the employer and the employer's
employees from entering into mutual contracts and agreements respecting hospital benefits and
accommodations, medical and surgical services, nursing, and medicines to be furnished to the
employees as provided in this chapter or Chapter 3, Utah Occupational Disease Act, if no direct
or indirect profit is made by any employer as a result of the contract or agreement.
(3) The purpose and intent of this section is that, where hospitals are maintained and
medical and surgical services and medicines furnished by the employer from payments by, or
assessments on, the employer's employees, the payments or assessments may not be more or
greater than necessary to make these benefits self-supporting for the care and treatment of the
employer's employees. Money received or retained by the employer from the employees for the
purpose of these benefits shall be paid and applied to these services. Any hospitals so maintained
in whole or in part by payments or assessment of employees are subject to the inspection and
supervision of the division as to services and treatment rendered to the employees.
Renumbered and Amended by Chapter 375, 1997 General Session
Download Code Section Zipped WordPerfect 34A02_041900.ZIP 3,136 Bytes
Sections in this Chapter|Chapters in this Title|All Titles|Legislative Home Page
Last revised: Wednesday, July 23, 2008