1. (1) Service localized in this state. The service is considered to be localized in Utah if it is performed entirely within Utah. The service is also considered to be localized in Utah if performed both inside and outside of Utah, but the service outside of Utah consists of isolated transactions or is otherwise incidental or transitory to the service in Utah. Some of the factors which indicate the service is incidental or transitory are:

   1. (a) the employer and the worker intend the service outside of Utah to be an isolated transaction, and not a regular part of the worker's duties;
   2. (b) the worker intends to return to Utah upon completion of the work assignment rather than move to the other state;
   3. (c) the service performed outside the state is different in nature from the service performed within Utah; or
   4. (d) it is anticipated that the worker will perform services outside the state for 12 months or less, however this length of time is intended only as an example and other variables such as the terms of the contract of hire, whether written or oral, will be considered.

2. (2) Service is not localized in any state; however, some service is performed in Utah. If the service is not localized in any state but some of the service is performed by the worker in Utah, the entire service is covered in Utah in the following situations.

   1. (a) The worker's base of operations is in Utah. The "base of operations" is the place from which the worker starts work and to which the worker customarily returns for instructions from the employer, communications from customers, to replenish stocks or materials, to repair equipment, or to perform any other function necessary in the trade or profession. The base of operations may be the worker's business office, which may be located at the worker's residence, or the contract of employment may specify a particular place at which the worker is to receive direction and instructions.
   2. (b) The place from where service is controlled or directed is in Utah. If the worker has no base of operations or does not perform any service in the state in which the base of operations is located, it is necessary to determine if any service is performed in the state from which the service is controlled or directed. The place from which the service is controlled or directed is the place at which the basic authority exists rather than the place at which a manager or foreperson supervises the service.
   3. (c) The place of residence is in Utah. If the conditions in Subsection (2)(a) or (2)(b) of this section do not apply, it is necessary to apply the test of residence. Under this test, the service is covered in Utah if the worker lives in Utah and performs some services in Utah.

3. (3) Service is not localized in any state and no service is performed in Utah. If the service is not localized in any state and none of the service is performed by the worker in Utah, the entire service is covered in Utah in the following situations.

   1. (a) The worker's base of operations is in Utah. The "base of operations" is the place from which the worker starts work and customarily returns for instructions from the employer, to replenish stocks or materials, to repair equipment or to perform any other function necessary in the worker's trade or profession. The base of operations may be the worker's business office, which may be located at the worker's residence, or the contract of employment may specify a particular place at which the worker is to receive direction and instructions.
   2. (b) The place from where the service is controlled or directed is in Utah. If the worker has no base of operations or does not perform any service in the state in which the base of operations is located, it is necessary to determine if the worker is controlled and directed from Utah. The place from which the service is controlled or directed is the place at which the basic authority exists rather than the place at which a manager or foreperson supervises the service.

4. (4) Reciprocal coverage. If the worker's service is found not to be subject to any one state under Subsection (1), (2), or (3), the employer may elect to cover the worker's service in one state. This election must be pursuant to Section 35A-4-106 for reciprocal coverage arrangements. The Department will approve reciprocal coverage and allow an employer to cover a worker's entire service in Utah if:

   1. (a) the employer petitions for coverage;
   2. (b) part of the worker's service is in Utah, the worker lives in Utah, or the worker maintains a place of business in Utah; and
   3. (c) the other state or states approve the election.

Employment is covered under the Act if a worker's service is performed within Utah. Workers who perform services for one employer in more than one state are covered in Utah under certain circumstances.

KEY: unemployment compensation, employment tests, independent contractor

Date of Last Change: October 28, 2022

Notice of Continuation: March 3, 2025

Authorizing, and Implemented or Interpreted Law: 35A-4-204; 26 USC 3304(a)(6)(A)