Prisoners would not be able to collect worker's compensation under bill passed by committee

A bill proposed by Rep. Michael Morley, R-Spanish Fork, would close a loophole in the workers' compensation system that currently allows former employees to collect benefits when they are fit to work, but unable to do so because of incarceration. The bill addresses wage compensation benefits and would not effect medical and/or disability benefits.

The House Business and Labor standing committee passed HB384 out with a favorable recommendation, but not before members found clarification on how a worker's status as undocumented would play into Morley's proposal.

Dennis Lloyd, general counsel for the Utah Worker's Compensation Fund, distinguished between medical and wage benefit payouts.

"Individuals who are incarcerated, or of illegal status, could receive full benefits, due to medical incapacity, but ... someone who is able to work, but incarcerated, would not be eligible," Lloyd said.

Morley added, in his testimony to the committee, that a worker who was fit to return to work after a temporary medical leave, but unable to do so due to immigration status, would also not be eligible for wage benefits.

Richard Burke from the Utah Association for Justice testified that HB384 creates some financial incentives for employers to higher illegal immigrants, by releasing them from obligations to pay out some types of benefits.

"There are some unintended consequences ... the bill discriminates against legal status ... and creates incentives to hire illegal labor," Burke said.

HB384 heads to the House floor for further action.