34A-2-419 - Agreements in addition to compensation and benefits.
34A-2-419. Agreements in addition to compensation and benefits.
(1) (a) Subject to the approval of the division, any employer securing the payment ofworkers' compensation benefits for its employees under Section 34A-2-201 may enter into orcontinue any agreement with the employer's employees to provide compensation or other benefitsin addition to the compensation and other benefits provided by this chapter or Chapter 3, UtahOccupational Disease Act.
(b) An agreement may not be approved if it requires contributions from the employees,unless it confers benefits in addition to those provided under this chapter or Chapter 3, UtahOccupational Disease Act, at least commensurate with the contributions.
(c) An agreement for additional benefits may be terminated by the division if:
(i) it appears that the agreement is not fairly administered;
(ii) its operation discloses defects threatening its solvency; or
(iii) for any substantial reason it fails to accomplish the purposes of this chapter orChapter 3, Utah Occupational Disease Act.
(d) If the agreement is terminated, the division shall determine the proper distribution ofany remaining assets.
(e) The termination under Subsection (1)(c) becomes a final order of the commissioneffective 30 days from the date the division terminates the agreement, unless within the 30 dayseither the employer or employee files an application for hearing with the Division of Adjudicationin accordance with Part 8, Adjudication. The application for hearing may contest:
(i) the recommendation to terminate the agreement;
(ii) the distribution of remaining assets after termination; or
(iii) both the recommendation to terminate and the distribution of remaining assets.
(2) (a) Any employer who makes a deduction from the wages or salary of any employeeto pay for the statutory benefits of this chapter or Chapter 3, Utah Occupational Disease Act, isguilty of a class A misdemeanor.
(b) Subject to the supervision of the division, nothing in this chapter or Chapter 3, UtahOccupational Disease Act, may be construed as preventing the employer and the employer'semployees from entering into mutual contracts and agreements respecting hospital benefits andaccommodations, medical and surgical services, nursing, and medicines to be furnished to theemployees as provided in this chapter or Chapter 3, Utah Occupational Disease Act, if no director indirect profit is made by any employer as a result of the contract or agreement.
(3) The purpose and intent of this section is that, where hospitals are maintained andmedical and surgical services and medicines furnished by the employer from payments by, orassessments on, the employer's employees, the payments or assessments may not be more orgreater than necessary to make these benefits self-supporting for the care and treatment of theemployer's employees. Money received or retained by the employer from the employees for thepurpose of these benefits shall be paid and applied to these services. Any hospitals so maintainedin whole or in part by payments or assessment of employees are subject to the inspection andsupervision of the division as to services and treatment rendered to the employees.
Renumbered and Amended by Chapter 375, 1997 General Session