Officials of an employee leasing company based in Phoenix had a deadline Monday to submit an application for self-insurance and tell State Industrial Commission employees why they meet the minimum requirements for workmen's compensation insurance in the state.

By Wednesday, Dec. 11, the commission is required to submit a statement if the employees feel the application filed by Instaff International Inc. isn't adequate to meet Utah law that requires all companies to have workmen's compensation insurance for benefits to injured workers.On Friday, Dec. 13, attorneys for the company and the commission will be in 3rd District Court for further argument on a motion by the commission to prohibit Instaff from operating in Utah until it gets adequate workmen's compensation insurance.

All of the above requirements were ordered last week by Judge David S. Young who appeared a little miffed that the company hadn't complied with the commission's request to submit information on the company's plan protecting injured workers.

Earlier this month, the commission filed a complaint, claiming Instaff hadn't purchase workmen's compensation insurance, something required of every company in Utah. They wanted the company, which has between 150 and 180 employees in Utah, shut down until it got the required insurance.

The complain said state officials were concerned about the financial stability of the company in light of three of Instaff's subsidiaries filing for Chapter 11 of the federal bankruptcy laws in New Mexico.

Lyman Sandy, Instaff's attorney, said the company does have a workmen's compensation plan, one that is allowed by the Employer's Retirement Income Security Act. He said the company's plan provides as much or more workmen's compensation coverage than other programs in the state.

He said if the state prevails in the lawsuit, Instaff would be required to purchase a second workmen's compensation insurance program that would cost the company twice for single coverage.

Sandy said there is no harm to anyone if the company is allowed to operate because it has ample financial reserves and the company is solvent. Sandy was prepared to have witnesses testify about the virtues of Instaff's plan for protecting injured workers, but at Young's request he told of what the testimony would be.

Thomas C. Sturdy, the commission's attorney, disagreed with Sandy about the company's financial solvency and the statement that 150-180 people would be hurt if the company is shut down. Sturdy said the companies receiving employees from Instaff can go find another employee leasing company that meets Utah workmen's compensation requirements.

There are three ways companies can be covered by workmen's compensation insurance in Utah: self-insurance by proving the company has the resources, insurance from private carriers and insurance from the Workers' Compensation Fund of Utah. Instaff officials believe the plans allowed under ERISA are a fourth method.