H.B. 130 Enrolled

EXEMPTION FOR DOMESTIC WORKERS FOR PERSONS
ELIGIBLE FOR STATE AND FEDERAL PROGRAMS
2001 GENERAL SESSION
STATE OF UTAH
Sponsor: Trisha S. Beck
This act modifies the Utah Labor Code to exempt certain domestic workers from coverage
under workers' compensation provisions and to make technical and conforming changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
34A-2-104, as last amended by Chapter 45, Laws of Utah 1998
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 34A-2-104 is amended to read:
34A-2-104. "Employee," "worker," or "operative" defined -- Mining lessees and
sublessees -- Corporate officers and directors -- Real estate agents and brokers -- Prison
inmates -- Insurance agents -- Certain domestic workers.
(1) As used in this chapter and Chapter 3, Utah Occupational Disease Act, "employee,"
"worker," and "operative" mean:
(a) (i) each elective and appointive officer and any other person[,]:
(A) in the service of:
(I) the state[,]; [or of any]
(II) a county, city, or town[,] within the state; or
(III) a school district within the state[,];
(B) serving the state, or any county, city, town, or school district under [any]:
(I) an election [or];
(II) appointment[,]; or [under]
(III) any contract of hire, express or implied, written or oral[,]; and
(ii) including [each]:
(A) an officer [and] or employee of the state institutions of learning; and [members]
(B) a member of the National Guard while on state active duty; and

(b) each person in the service of any employer, as defined in Section 34A-2-103 , who
employs one or more workers or operatives regularly in the same business, or in or about the same
establishment[,]:
(i) under any contract of hire[,]:
(A) express or implied[,]; and
(B) oral or written[,];
(ii) including aliens and minors, whether legally or illegally working for hire[, but]; and
(iii) not including any person whose employment:
(A) is casual; and
(B) not in the usual course of the trade, business, or occupation of the employee's employer.
(2) (a) Unless a lessee provides coverage as an employer under this chapter and Chapter 3,
any lessee in mines or of mining property and each employee and sublessee of the lessee shall be:
(i) covered for compensation by the lessor under this chapter and Chapter 3[, and shall be];
(ii) subject to this chapter and Chapter 3; and
(iii) entitled to [its] the benefits of this chapter and Chapter 3, to the same extent as if [they]
the lessee, employee, or sublessee were employees of the lessor drawing the wages paid employees
for substantially similar work.
(b) The lessor may deduct from the proceeds of ores mined by the lessees an amount equal
to the insurance premium for that type of work.
(3) (a) A partnership or sole proprietorship may elect to include any partner of the
partnership or owner of the sole proprietorship as an employee of the partnership or sole
proprietorship under this chapter and Chapter 3.
(b) If a partnership or sole proprietorship makes an election under Subsection (3)(a), [it] the
partnership or sole proprietorship shall serve written notice upon its insurance carrier naming the
persons to be covered.
(c) A partner of a partnership or owner of a sole proprietorship may not be considered an
employee of the partner's partnership or the owner's sole proprietorship under this chapter or Chapter
3[, Utah Occupational Disease Act,] until [this] the notice [has been] described in Subsection (3)(b)

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is given.
[(c)] (d) For premium rate making, the insurance carrier shall assume the salary or wage of
the partner or sole proprietor electing coverage under Subsection (3)(a) to be 100% of the state's
average weekly wage.
(4) (a) A corporation may elect not to include any director or officer of the corporation as
an employee under this chapter and Chapter 3[, Utah Occupational Disease Act].
(b) If a corporation makes an election under Subsection (4)(a), [it] the corporation shall serve
written notice upon its insurance carrier naming the persons to be excluded from coverage.
(c) A director or officer of a corporation is considered an employee under this chapter and
Chapter 3[, Utah Occupational Disease Act,] until [this] the notice [has been] described in
Subsection (4)(b) is given.
(5) As used in this chapter and Chapter 3, "employee," "worker," and "operative" do not
include:
(a) a real estate sales agent or real estate broker, as defined in Section 61-2-2 , who performs
services in that capacity for a real estate broker if:
(i) substantially all of the real estate sales agent's or associated broker's income for services
is from real estate commissions; and
(ii) the services of the real estate sales agent or associated broker are performed under a
written contract that:
(A) the real estate agent is an independent contractor; and
(B) the real estate sales agent or associated broker is not to be treated as an employee for
federal income tax purposes;
(b) an offender performing labor under Section 64-13-16 or 64-13-19 , except as required by
federal statute or regulation; [or]
(c) an individual who for an insurance agent or broker, as defined in Section 31A-1-301 ,
solicits, negotiates, places or procures insurance if:
(i) substantially all of the individual's income from those services is from insurance
commissions; and

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(ii) the services of the individual are performed under a written contract that states that the
individual:
(A) is an independent contractor;
(B) is not to be treated as an employee for federal income tax purposes; and
(C) can derive income from more than one insurance company[.]; or
(d) notwithstanding Subsection 34A-2-103 (4), an individual who provides domestic work
for a person if:
(i) the person for whom the domestic work is being provided receives or is eligible to receive
the domestic work under a state or federal program designed to pay the costs of domestic work to
prevent the person from being placed in:
(A) an institution; or
(B) a more restrictive placement than where that person resides at the time the person
receives the domestic work;
(ii) the individual is paid by a person designated by the Secretary of the Treasury in
accordance with Section 3504, Internal Revenue Code, as a fiduciary, agent, or other person that has
the control, receipt, custody, or disposal of, or pays the wages of the individual; and
(iii) the domestic work is performed under a written contract that notifies the individual that
the individual is not an employee under this chapter or Chapter 3.
(6) An individual described in Subsection (5)(d) may become an employee under this chapter
and Chapter 3 if the employer of the individual complies with:
(a) this chapter and Chapter 3; and
(b) commission rules.

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