§ 78B-4-518 — Limitation on liability of employer for employee convicted of offense.

Utah § 78B-4-518

• Jurisdiction: Utah
• Title 78B: Judicial Code
• Ch. 78B-4: Limitations on Liability
• Part 78B-4-5: Particular Limitations on Liability

Text

(1) As used in this section:

(1)(a) (1)(a)(i) Except as provided in Subsection (1)(a)(ii), "employee" means an individual whom an employer hired for compensation to perform services.
(1)(a)(ii) "Employee" does not include an independent contractor as defined in Subsection 34A-2-103(2)(b).
(1)(b) "Employer" means a person, including the state and any political subdivision of the state, that employs one or more employees and is engaged in an industry or business related to:
(1)(b)(i) automotive repair and maintenance;
(1)(b)(ii) construction;
(1)(b)(iii) culinary arts;
(1)(b)(iv) manufacturing;
(1)(b)(v) oil, gas, or mining;
(1)(b)(vi) retail sale of goods or services; or
(1)(b)(vii) transportation of freight, merchandise, or other property by a commercial vehicle.
(2) A cause of action may not be brought against an employer for negligently hiring an employee based solely on evidence that the employee has been previously convicted in this state or in another jurisdiction of an offense.
(3) Subsection (2) does not preclude a cause of action for negligent hiring of an employee if the employer knew, or should have known, about the employee's prior conviction and due to the employee's prior conviction:

(3)(a) the employer violated state or federal law by hiring or continuing to employ the employee; or
(3)(b) the employer's hiring of the employee constitutes willful misconduct or gross negligence.
(4) The protections provided to an employer under this section do not apply in a cause of action concerning the misuse of funds or property of a person other than the employer if:

(4)(a) on the date that the employee was hired by the employer, the employee had been previously convicted of an offense that includes fraud or the misuse of funds as an element of the offense; and
(4)(b) it was foreseeable that the position for which the employee was hired would involve duties in managing funds or property.
(5) Section 63G-7-301 does not waive any immunity provided under this section for an employer that is a governmental entity or an employee of a governmental entity as those terms are defined in Section 63G-7-102.
(6) This section does not:

(6)(a) create a cause of action; or
(6)(b) expand an existing cause of action.

Legislative History

Enacted by Chapter 423, 2022 General Session; Sunset by Section 63I-1-278