Utah has enacted two pieces of legislation (Senate Bill 95 and House Bill 252), which temporarily amend certain employer hiring liabilities and add employer verification requirements. Both take effect on May 4, 2022. Senate Bill 95 is set to expire on July 1, 2025.
The Details:
Employer Hiring Liability:
Covered Employers:
Senate Bill 95 applies to employers with one or more employees in an industry or a business related to auto repair and maintenance; construction; culinary arts; manufacturing; oil, gas, or mining; retail sale of goods or services; or transportation of freight, merchandise, or other property by a commercial vehicle.
Covered Employees:
The law covers workers hired for pay but excludes independent contractors.
Limited Hiring Liability:
The law helps shield employers from negligent hire claims based solely on the evidence that the hired worker was previously convicted of an offense in Utah or another jurisdiction.
Exceptions:
This protection does not apply for claims where an employer:
- Knew, or should have known, about a worker's prior conviction, and the employer's hiring or continuing employment of that worker violated state or federal law or constituted willful misconduct or gross negligence; or
- Hires a worker previously convicted of an offense involving fraud or the misuse of funds when it's foreseeable that the role would involve managing funds or property, and the hiring results in the misuse of funds or property of a person other than the employer.
Employment Verification:
House Bill 252 amends Utah's Private Employer Verification Act to require employers with 150 or more employees (previously 15 or more employees) to use a status verification system (e.g., E-Verify) to verify the federal legal working status of new hires on or after May 4, 2022.
Next Steps:
Employers in Utah should review their hiring practices to ensure compliance with Senate Bill 95 and House Bill 252.