Utah Code 31A-40-212. Determination of joint employers — Franchisors excluded

31A-40-212. Determination of joint employers — Franchisors excluded.

(1)

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Terms Used In Utah Code 31A-40-212

Agency: means :

(a)	a person other than an individual, including a sole proprietorship by which an individual does business under an assumed name; and

(b)

an insurance organization licensed or required to be licensed under Section 31A-23a-301, 31A-25-207, or 31A-26-209. See Utah Code 31A-1-301

Department: means the Insurance Department. See Utah Code 31A-1-301

Employee: means :

(a)	an individual employed by an employer; or

(b)

an individual who meets the requirements of Subsection (53)(b). See Utah Code 31A-1-301

Franchise: means the same as that term is defined in 16 C. See Utah Code 31A-40-102

Franchisee: means the same as that term is defined in 16 C. See Utah Code 31A-40-102

Franchisor: means the same as that term is defined in 16 C. See Utah Code 31A-40-102

Policy: includes a service contract issued by:

(i)	a motor club under Chapter 11, Motor Clubs;

(ii)	a service contract provided under Chapter 6a, Service Contracts; and

(iii)

a corporation licensed under:

(A)	Chapter 7, Nonprofit Health Service Insurance Corporations; or

(B)

Chapter 8, Health Maintenance Organizations and Limited Health Plans. See Utah Code 31A-1-301

Security: means a:

(i)

note;

(ii)

stock;

(iii)

bond;

(iv)	debenture;

(v)	evidence of indebtedness;

(vi)	certificate of interest or participation in a profit-sharing agreement;

(vii)

collateral-trust certificate;

(viii)

preorganization certificate or subscription;

(ix)	transferable share;

(x)	investment contract;

(xi)	voting trust certificate;

(xii)

certificate of deposit for a security;

(xiii)

certificate of interest of participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease;

(xiv)

commodity contract or commodity option;

(xv)	certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in Subsections (171)(a)(i) through (xiv); or

(xvi)	another interest or instrument commonly known as a security. See Utah Code 31A-1-301 Statute: A law passed by a legislature. United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a)	For purposes of determining whether two or more persons are considered joint employers under this chapter, an administrative ruling of a federal executive agency may not be considered a generally applicable law unless that administrative ruling is determined to be generally applicable by a court of law, or adopted by statute or rule.

(b)

Nothing in this Subsection (1) prohibits the commissioner, in making policy decisions and taking enforcement action, from applying an administrative ruling or opinion issued by the United States Department of Labor that decides or opines on whether an employee welfare benefit plan is established and maintained for a single employer, multiple employer, or co-employer under the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.

(2)

(a)

For purposes of this chapter, a franchisor is not considered to be an employer of:

(i)	a franchisee; or

(ii)	a franchisee’s employee.

(b)

With respect to a specific claim for relief under this chapter made by a franchisee or a franchisee’s employee, this Subsection (2) does not apply to a franchisor under a franchise that exercises a type or degree of control over the franchisee or the franchisee’s employee not customarily exercised by a franchisor for the purpose of protecting the franchisor’s trademarks and brand.

Enacted by Chapter 370, 2016 General Session

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