State Codes and Statutes
Statutes > Utah > Title-34a > Chapter-02 > 34a-2-21134A-2-211. Notice of noncompliance to employer -- Enforcement power of division-- Penalty.
(1) (a) In addition to the remedies specified in Section 34A-2-210, if the division hasreason to believe that an employer is conducting business without securing the payment ofbenefits in a manner provided in Section 34A-2-201, the division may give that employer writtennotice of the noncompliance by certified mail to the last-known address of the employer.
(b) If the employer does not remedy the default within 15 days after the day on which thenotice is delivered, the division may issue an order requiring the employer to appear before thedivision and show cause why the employer should not be ordered to comply with Section34A-2-201.
(c) If the division finds that an employer has failed to provide for the payment of benefitsin a manner provided in Section 34A-2-201, the division may require the employer to complywith Section 34A-2-201.
(2) (a) Notwithstanding Subsection (1), the division may impose a penalty against theemployer under this Subsection (2):
(i) subject to Title 63G, Chapter 4, Administrative Procedures Act; and
(ii) if the division believes that an employer of one or more employees is conductingbusiness without securing the payment of benefits in a manner provided in Section 34A-2-201.
(b) The penalty imposed under Subsection (2)(a) shall be the greater of:
(i) $1,000; or
(ii) three times the amount of the premium the employer would have paid for workers'compensation insurance based on the rate filing of the Workers' Compensation Fund, during theperiod of noncompliance.
(c) For purposes of Subsection (2)(b)(ii):
(i) the premium is calculated by applying rates and rate multipliers to the payroll basisunder Subsection (2)(c)(ii), using the highest rated employee class code applicable to theemployer's operations; and
(ii) the payroll basis is 150% of the state's average weekly wage multiplied by the highestnumber of workers employed by the employer during the period of the employer's noncompliancemultiplied by the number of weeks of the employer's noncompliance up to a maximum of 156weeks.
(3) A penalty imposed under Subsection (2) shall be:
(a) deposited in the Uninsured Employers' Fund created by Section 34A-2-704;
(b) used for the purposes of the Uninsured Employers' Fund specified in Section34A-2-704; and
(c) collected by the Uninsured Employers' Fund administrator in accordance with Section34A-2-704.
(4) (a) An employer who disputes a determination, imposition, or amount of a penaltyimposed under Subsection (2) shall request a hearing before an administrative law judge within30 days of the date of issuance of the administrative action imposing the penalty or theadministrative action becomes a final order of the commission.
(b) An employer's request for a hearing under Subsection (4)(a) shall specify the factsand grounds that are the basis of the employer's objection to the determination, imposition, oramount of the penalty.
(c) An administrative law judge's decision under this Subsection (4) may be reviewed
pursuant to Part 8, Adjudication.
(5) An administrative action issued by the division under this section shall:
(a) be in writing;
(b) be sent by certified mail to the last-known address of the employer;
(c) state the findings and administrative action of the division; and
(d) specify its effective date, which may be:
(i) immediate; or
(ii) at a later date.
(6) A final order of the commission under this section, upon application by thecommission made on or after the effective date of the order to a court of general jurisdiction inany county in this state, may be enforced by an order to comply:
(a) entered ex parte; and
(b) without notice by the court.
Amended by Chapter 288, 2009 General Session
