Utah Unpaid Interns May be Eligible for Worker's Compensation
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FAQ
With few exceptions, Utah employers are required to maintain workers' compensation insurance coverage. Coverage is available from a large number of insurance companies.
Intentional acts: When a worker intentionally causes their workplace injuries or illnesses, they are not covered under a Workers' Comp insurance policy. Illegal activities: Employee injuries due to illegal activities at the worksite are not covered by an organization's Workers' Compensation insurance policy.
When a worker is injured, each missed day of work represents lost wages. In workers' compensation insurance, indemnity benefits are paid to the employee to help them cover their loss of income. Payments are a portion of the worker's average weekly wage, and take into consideration the extent of the disability.
Coverage Requirements and Premiums With a few exceptions, every employer is required to provide workers' compensation coverage for all its employees. Refer to Utah Code Ann. §34A-2-201. The Utah Department of Insurance establishes basic premium rates.
Utah mandates strict workers' compensation insurance coverage for employers. With just a few exceptions, every Utah company that employs workers must provide workers' compensation insurance.
Corporations that do not contract their work and have no employees except directors and/or officers can file a notice to exclude themselves from workers' compensation benefits. This exclusion is limited to no more than five directors/officers.
Unpaid internships are legal if the intern is the primary beneficiary of the arrangement. This is determined by the seven-point Primary Beneficiary Test. If an employer is the primary beneficiary, the intern is considered an employee under the Fair Labor Standards Act and entitled to minimum wage.
California rules for an unpaid internshipThe intern can't get employee benefits, such as insurance or workers compensation. The employer must instruct the intern to operate in a specific industry, not only a particular firm. After recruiting, the company has to be upfront about the unpaid nature of this position.
Corporations that do not contract their work and have no employees except directors and/or officers can file a notice to exclude themselves from workers' compensation benefits. This exclusion is limited to no more than five directors/officers. Please see our Corporate Exclusion section for additional information.
