The State Industrial Commission has obtained temporary restraining orders against 60 Utah businesses because they don't have workers' compensation insurance for their employees.
James E. Harward, director of the commission's legal division, said the businesses are charged with violating Section 35-1-6 of the Utah Code, which specifies that employers are required to have workers' compensation insurance to cover their employees when they get injured.Charges have been filed against 26 businesses in Utah County, 22 in Salt Lake County, nine in the Weber/Davis county area and three in southern Utah.
Harward said temporary restraining orders have been signed by district court judges in the respective areas and will be in effect for 10 days during which time the businesses and their principals are prohibited from doing business. At the end of the 10-day period, there will be a hearing before a judge to decide if permanent injunctions will be issued.
Failure to provide evidence of workers' compensation insurance coverage will result in permanent closure of the business until coverage is obtained, Harward said.
The three ways in Utah to provide worker's compensation benefits for employees is by being self-insured or obtaining coverage through the Workers' Compensation Fund of Utah or a private insurance company.