Utah Workers’ Comp Exemption
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When coverage is required in Utah
Utah generally requires coverage once a business employs anyone beyond the owner(s)/partners/officers/directors themselves (Utah Code § 34A-2-104(1)(b) covers any person in the service of an employer who employs one or more workers regularly). A business entity (sole proprietorship, partnership, LLC, or corporation per § 34A-2-1002) with NO employees other than its owner(s)/partner(s)/officer(s)/director(s) may instead obtain a Workers' Compensation Coverage Waiver so that it need not carry a policy at all.
Who can be excluded in Utah
Sole proprietors
A partnership or sole proprietorship may elect to INCLUDE any partner/owner as a covered employee under Utah Code § 34A-2-104(3)(a) by serving written notice on its insurance carrier naming the persons to be covered -- until that notice is given, the owner is not considered an employee (i.e., excluded by default). Separately, a sole proprietorship with no other employees may obtain a one-year Workers' Compensation Coverage Waiver under § 34A-2-1003 so it need not carry a policy at all.
Partners
Same mechanism as sole proprietors: excluded by default; may elect inclusion under § 34A-2-104(3)(a) via written notice to the insurance carrier, or the partnership may obtain a Coverage Waiver under § 34A-2-1003 if it has no other employees. Exception: if the partnership/sole proprietorship is a motor carrier employing at least one non-owner individual, and the partner/owner personally drives a motor vehicle for it, that partner/owner IS an employee by statute (§ 34A-2-104(3)(b)).
LLC members
Utah statute does not separately define LLC members in § 34A-2-104; Utah Code § 34A-2-1002 (Coverage Waivers Act) lists a 'limited liability company' as one of the eligible 'business entities,' and LLC members are generally treated as partners/owners for these purposes.
Corporate officers
A corporation may elect NOT to include any director or officer as an employee (Utah Code § 34A-2-104(4)(a)) by serving written notice naming the excluded individuals -- on its insurance carrier if it has one, or on the Labor Commission if the corporation is self-insured or has no employee other than the director(s)/officer(s) being excluded. A corporation may exclude no more than five (5) individuals who are directors or officers under the commission-filed version of this notice (§ 34A-2-104(4)(c)). Until the required notice is given, a director/officer is considered an employee by default. Exception: this exclusion does not apply to a director/officer of a motor carrier who personally operates a motor vehicle for it.
Construction rules in Utah
No construction-industry-specific exemption statute was located in this research beyond the general Coverage Waiver framework; a secondary (non-official) source claims LLC construction businesses cannot use the waiver under the Construction Trades Licensing Act (Utah Code Title 58, Ch. 55), but this was not independently verified against primary source text and should be confirmed with the Utah Labor Commission or a licensed Utah agent before publishing.
How the exemption is filed
A business entity with no employees other than the owner(s)/partner(s)/officer(s)/director(s) it wants excluded applies to the Utah Labor Commission for a Workers' Compensation Coverage Waiver (WCCW), online at webaccess.laborcommission.utah.gov/wccoveragewaivers/. Applicant must submit supporting documentation under Utah Code § 34A-2-1004 (two or more of: prior-year tax return showing business income, a valid business license, an occupational/professional license, or proof of active liability insurance; or one of those plus two of: bank account proof, phone number + physical location proof, or an advertisement showing the business name/contact info) and pay a fee set by the Commission not to exceed $50 (§ 34A-2-1003(1)(d)). The waiver expires one year from issuance and must be renewed (same fee cap, same information) to stay in effect; it becomes invalid the moment the business employs anyone beyond the named owner(s)/officer(s)/director(s).
- Form
- No state exemption form — see above
- Statute
- Utah Code §§ 34A-2-1001 to 34A-2-1005 (Workers' Compensation Coverage Waivers Act); § 34A-2-104(3)-(4) (partner/owner and corporate officer/director inclusion-exclusion elections)
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
The waiver could not be tied to a specific numbered paper form -- the Labor Commission's process is described as an online application (with a printable version also referenced) rather than a single form number; a secondary source's claim of 'Form 113' or 'Form 100' could not be confirmed against the official Labor Commission pages fetched, so no form name/number is asserted here. The five-officer cap applies specifically to the Labor-Commission-filed exclusion notice under § 34A-2-104(4)(b)(ii)/(c) (used when the corporation is self-insured or has no other employees); the statute text as fetched does not state whether the same 5-officer cap applies to a notice filed instead with an insurance carrier under § 34A-2-104(4)(b)(i).
Sources
- https://laborcommission.utah.gov/divisions/industrial-accidents/employers/wccw/
- https://le.utah.gov/xcode/Title34A/Chapter2/C34A-2-P10_1800010118000101.pdf
- https://le.utah.gov/xcode/Title34A/Chapter2/C34A-2-S104_2019051420190514.pdf
- https://law.cornell.edu/regulations/utah/Utah-Admin-Code-R612-400-4
Source material dated Utah Code as amended through the 2019 (§34A-2-104) and 2017 (§34A-2-1004) general sessions, retrieved 2026-08-30. Compiled from official Utah sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Utah Labor Commission, Division of Industrial Accidents or ask us and we’ll check it for you.
Workers' comp exemption filing in Utah
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