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Independent Contractor Test in Utah

For unemployment insurance, Utah treats paid service as employment unless the worker is customarily engaged in an independently established business and free from control or direction, a two part test rather than the full ABC test.

Last checked . General information, not legal advice.

Utah at a glance

Test for unemployment insurance
Two part test: control and independent business
The worker must be independently established in the same kind of business and free from control over the means of performance.
ABC test for unemployment
No
Utah's test has no usual course of business prong.

Sources

Last checked

The rules in Utah

Which test does Utah use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Utah: Two part test: control and independent business. The worker must be independently established in the same kind of business and free from control over the means of performance.

Does Utah apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Utah: no. Utah's test has no usual course of business prong.

Where do the Utah independent contractor tests come from?

The rules above come from Utah Code 35A-4-204(3). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.