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News Release
October 30, 2003

Contacts: Natalie Gochnour (801) 538-1503
Kort Utley (801) 538-1053

State Will Vigorously Defend Against Workers Compensation Lawsuit
Five executive branch elected officials united in the state’s defense

Utah’s five elected state officers will vigorously defend the lawsuit against the state by the Workers Compensation Fund.

“It is extremely important that the public understand the Workers Compensation Fund issue,” said Governor Leavitt. “This is not just a passing or technical issue, but an issue whose outcome will either benefit or do violence to the business climate of Utah for years to come.”

For 86 years, the state of Utah has provided a safety net for Utah workers and employers in the form of a state insurance fund. Because state law requires workers compensation insurance, the state established this fund as a state agency to assist businesses whose small size or unusual risks would normally price them out of the insurance market. Utah today enjoys a competitive advantage over other states due to its state laws, the non-litigious attitudes of the citizens and to Utah’s Workers Compensation Fund, which is the modern version of the agency that provides that safety net.

The Workers Compensation Fund has been supported for its entire history by public money in the form of a tax exemption. “Everything comes at a price,” said State Treasurer Ed Alter. “The tax exemption is the price of the safety net for small business. Premiums in other states, by comparison, can be much higher.”

The management and board of directors of the Workers Compensation Fund are now seeking a change. They have filed a lawsuit against the state seeking a declaration that would enable them to walk away with hundreds of millions of taxpayer dollars.

“We, the five elected officers of the State of Utah, unanimously feel it is a matter of our public duty to oppose this lawsuit,” said Attorney General Mark Shurtleff. “It’s simply unnecessary. This is primarily a public policy question, not a legal one.”