1     
LIMITATIONS ON EMPLOYER LIABILITY

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Derrin R. Owens

5     
House Sponsor: ____________

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, or failing to adequately
14     supervise, an employee that has been previously convicted of an offense; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     ENACTS:
22          78B-4-518, Utah Code Annotated 1953
23     

24     Be it enacted by the Legislature of the state of Utah:
25          Section 1. Section 78B-4-518 is enacted to read:
26     
Part 5. Particular Limitations on Liability

27          78B-4-518. Limitation on liability of employer for employee convicted of offense.

28          (1) As used in this section:
29          (a) (i) Except as provided in Subsection (1)(a)(ii), "employee" means an individual
30     whom an employer hired for compensation to perform services under an oral or written
31     contract regardless of whether that contract is express or implied.
32          (ii) "Employee" does not include an independent contractor as defined in Subsection
33     34A-2-103(2)(b).
34          (b) "Employer" means a person, including the state and any political subdivision of the
35     state, that employs one or more employees.
36          (2) Notwithstanding any waiver of immunity in Section 63G-7-301, a cause of action
37     may not be brought against an employer for negligently hiring, or for failing to adequately
38     supervise, an employee based on evidence that the employee has been previously convicted in
39     this state or in another jurisdiction of an offense.
40          (3) Subsection (2) does not preclude a cause of action for negligent hiring, or the
41     failure of an employer to provide adequate supervision, of an employee if:
42          (a) the employer knew or should have known of the employee's prior conviction;
43          (b) the employee is convicted of an offense that was committed while the employee
44     was performing duties that were reasonably expected to be performed or encountered by the
45     employee in the course of employment; and
46          (c) the employee's prior conviction is substantially related to the duties that were
47     reasonably expected to be performed or encountered by the employee in the course of
48     employment.
49          (4) In determining whether an employee was previously convicted of an offense that is
50     substantially related to the duties that were reasonably expected to be performed or encountered
51     by the employee in the course of employment under Subsection (3)(c), the following factors
52     shall be considered:
53          (a) the extent and nature of the employee's past criminal activity, including:
54          (i) the age of the employee when the past criminal activity was committed;
55          (ii) the amount of time that has elapsed since the employee's last criminal activity;
56          (iii) the conduct and employment history of the employee before and after the
57     employee's past criminal activity;
58          (iv) evidence of the employee's rehabilitation, or rehabilitative effort, after the

59     employee's last criminal activity;
60          (v) evidence of the employee's compliance with any conditions of community
61     supervision, including parole or probation; and
62          (vi) any other evidence of the employee's fitness for the duties that were reasonably
63     expected to be encountered or performed by the employee in the course of employment;
64          (b) the nature and seriousness of the offense;
65          (c) the extent to which the duties offered the employee an opportunity to engage in
66     further criminal activity similar to criminal activity to which the individual previously had been
67     convicted;
68          (d) the relationship of the offense to the ability or capacity required to perform the
69     duties of employment; and
70          (e) any correlation between the elements of the offense and the duties that were
71     reasonably expected to be encountered or performed by the employee in the course of
72     employment.
73          (5) The protections provided to an employer under this section do not apply in a cause
74     of action concerning the misuse of funds or property of a person other than the employer if:
75          (a) on the date that the employee was hired by the employer, the employee had been
76     previously convicted of an offense that includes fraud or the misuse of funds as an element of
77     the offense; and
78          (b) it was foreseeable that the position for which the employee was hired would
79     involve duties in managing funds or property.
80          (6) This section does not:
81          (a) create a cause of action; or
82          (b) expand an existing cause of action.