Utah Bars Charging Workers for Required Medical Exams

On March 23, 2026, Governor Spencer Cox signed Utah House Bill (HB) 130 into law, clarifying that employers must pay the full cost of employer-required medical examinations and drug tests. The law also prohibits employers from shifting those costs to applicants or employees through direct payment or reimbursement arrangements.

HB 130 also prohibits reimbursement arrangements, requires employees to be paid for certain exam-related time, and prohibits employers from requiring employees to use leave to attend employer-required medical examinations.

This update applies to Utah employers, including prospective employers, that require applicants or employees to undergo medical examinations or drug testing as a condition of employment or continued employment. The law took effect on May 6, 2026.

What Employers Should Do

Legal Requirements

• Pay directly for any medical examination, including drug testing, which is required as a condition of pre-employment, employment, or continued employment. Applicants and employees may not be required to bear any portion of the cost.
• Do not require applicants or employees to pay for required medical examinations upfront, including through reimbursement arrangements.
• Compensate employees for time spent attending employer-required medical examinations outside their regular work schedules and do not require employees to use Paid Time Off (PTO), vacation, sick leave, or other leave to attend required examinations.

Practical Considerations

• Review pre-employment screening, drug-testing, physical-examination, and occupational-health procedures to confirm compliance with the law’s payment, timing, and leave requirements.
• Update recruiting, onboarding, and vendor-management practices to eliminate any direct or indirect cost-shifting arrangements.
• Coordinate recruiting, Human Resources (HR), payroll, and occupational-health processes to ensure employees are compensated for required examination time when applicable.
• Review offer letters, job postings, onboarding materials, and employee communications to confirm applicants and employees are not instructed to pay examination or testing costs.
• Maintain documentation demonstrating that employers paid healthcare providers directly and that employees were compensated appropriately for required examination time.

Overview

Covered Medical Examinations

• Employers may not require an applicant or employee to pay for a medical examination that is required as a condition of pre-employment, employment, or continued employment.
• “Medical examination” is defined broadly and expressly includes drug testing.
• The law applies to prospective employers as well as current employers, meaning the requirements extend to both applicants and employees.

Excluded Medical Appointments: A covered “medical examination” does not include an appointment conducted to permit an employee to take medical leave or to return from medical leave following an injury or illness that occurred outside the course and scope of employment.

Payment, Timing, and Leave Requirements

• Employers must pay healthcare providers directly for required medical examinations.
• Employers may not require applicants or employees to pay examination costs upfront and later seek reimbursement.
• Employees may not be required to attend employer-required medical examinations outside their regular work schedules without compensation.
• Employers may not require employees to use PTO, vacation, sick leave, or any other form of leave to attend a required medical examination.

Enforcement

• The Utah Labor Commission’s Division of Antidiscrimination and Labor enforces the law.
• Applicants and employees may file a complaint within one year after paying a prohibited fee or examination cost.
• If the Division determines a violation occurred, the employer may be required to reimburse prohibited fees paid to the employer and costs paid to healthcare providers.

Why This Matters

This law expands employer obligations beyond simply paying for required medical examinations and drug tests. The law also prohibits reimbursement arrangements, requires compensation for certain examination-related time, and prevents employers from requiring employees to use leave to attend employer-required examinations. Employers may need to revise recruiting, onboarding, occupational-health, payroll, and leave-administration practices to ensure compliance.

Key Risks for Employers

• Requiring applicants or employees to pay any portion of a required medical examination or drug test may lead to enforcement actions and reimbursement obligations.
• Requiring employees to attend required medical examinations without pay or to use PTO or other leave may result in additional compliance exposure.
• Employers found in violation may be required to reimburse prohibited fees and examination costs paid by applicants or employees.
• Applicants and employees may file complaints for up to one year after paying a prohibited fee or cost, which may extend the period of potential enforcement exposure.

Source References

• Utah HB 130 – Employment Medical Examination Expense Amendments

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