1     
LIMITATIONS ON EMPLOYER LIABILITY

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Derrin R. Owens

5     
House Sponsor: Kay J. Christofferson

6     

7     LONG TITLE
8     General Description:
9          This bill addresses liability of an employer.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     addresses liability of an employer for negligently hiring an employee that has been
14     previously convicted of an offense;
15          ▸     creates a sunset date; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          63I-1-278, as last amended by Laws of Utah 2020, Chapter 154
24     ENACTS:
25          78B-4-518, Utah Code Annotated 1953
26     

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 63I-1-278 is amended to read:
29          63I-1-278. Repeal dates, Title 78A and Title 78B.

30          (1) Section 78B-3-421, regarding medical malpractice arbitration agreements, is
31     repealed July 1, 2029.
32          (2) Section 78B-4-518, regarding the limitation on employer liability for an employee
33     convicted of an offense, is repealed on July 1, 2025.
34          [(2)] (3) Title 78B, Chapter 6, Part 2, Alternative Dispute Resolution Act, is repealed
35     July 1, 2026.
36          [(3)] (4) Title 78B, Chapter 12, Part 4, Advisory Committee, which creates the Child
37     Support Guidelines Advisory Committee, is repealed July 1, 2026.
38          Section 2. Section 78B-4-518 is enacted to read:
39     
Part 5. Particular Limitations on Liability

40          78B-4-518. Limitation on liability of employer for employee convicted of offense.
41          (1) As used in this section:
42          (a) (i) Except as provided in Subsection (1)(a)(ii), "employee" means an individual
43     whom an employer hired for compensation to perform services.
44          (ii) "Employee" does not include an independent contractor as defined in Subsection
45     34A-2-103(2)(b).
46          (b) "Employer" means a person, including the state and any political subdivision of the
47     state, that employs one or more employees and is engaged in an industry or business related to:
48          (i) automotive repair and maintenance;
49          (ii) construction;
50          (iii) culinary arts;
51          (iv) manufacturing;
52          (v) oil, gas, or mining;
53          (vi) retail sale of goods or services; or
54          (vii) transportation of freight, merchandise, or other property by a commercial vehicle.
55          (2) A cause of action may not be brought against an employer for negligently hiring an
56     employee based solely on evidence that the employee has been previously convicted in this
57     state or in another jurisdiction of an offense.

58          (3) Subsection (2) does not preclude a cause of action for negligent hiring of an
59     employee if the employer knew, or should have known, about the employee's prior conviction
60     and due to the employee's prior conviction:
61          (a) the employer violated state or federal law by hiring or continuing to employ the
62     employee; or
63          (b) the employer's hiring of the employee constitutes willful misconduct or gross
64     negligence.
65          (4) The protections provided to an employer under this section do not apply in a cause
66     of action concerning the misuse of funds or property of a person other than the employer if:
67          (a) on the date that the employee was hired by the employer, the employee had been
68     previously convicted of an offense that includes fraud or the misuse of funds as an element of
69     the offense; and
70          (b) it was foreseeable that the position for which the employee was hired would
71     involve duties in managing funds or property.
72          (5) Section 63G-7-301 does not waive any immunity provided under this section for an
73     employer that is a governmental entity or an employee of a governmental entity as those terms
74     are defined in Section 63G-7-102.
75          (6) This section does not:
76          (a) create a cause of action; or
77          (b) expand an existing cause of action.