Stop-Work Order

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What is a Stop-Work Order?

It’s a legal notice requiring an owner to cease ALL work until the issue has been resolved.
 

Who Enforces the Stop-Work Order?

The Florida Division of Workers’ Compensation enforces employer compliance by the following means:

  1. Conducting On-site Investigations
  2. Inspection of Business Records
  3. Interviewing of Employees

If the employer is in violation of any State mandated requirements, the Department may issue a Stop-Work Order to get the Employer into compliance.
 

Potential Criminal Penalties Under Florida Statute Section 440.105:

  • Conviction of a Misdemeanor of the First Degree punishable by up to one (1) year in jail and/or a maximum fine of $1000.
  • Conviction of a Felony of the Third Degree punishable by up to five (5) years in prison and/or a maximum fine of $5000.
  • Conviction of a Felony of the Second Degree punishable by up to fifteen (15) years in prison and/or a maximum fine of $10,000.
  • Conviction of a Felony of the First Degree punishable by up to thirty (30) years in prison and/or a maximum fine of $15,000.

 

Contractor Penalties include:

  • $1,000 per day for every day that work is performed that violates the Stop-Work order.
  • $5,000 penalty per employee for wrongly classifying an employee as an independent contractor rather than an employee.
  • Division may assess penalty of two times what an employer would have paid in workers’ compensation premiums within the preceding two year period.

 

Impact on your Business:

  • Penalties can be very extensive and costly to a business.
  • Broad impact on the operation of a construction project which may result in long delays and significant costs.

 

* During Fiscal Year 2015/2016, the Bureau of Insurance Fraud investigations resulted in:

  • 1,359 cases presented for prosecution
  • 1,179 arrests
  • 1,033 successful prosecutions
  • During this time period, the Division received and reviewed over 16,950 referrals of suspected insurance fraud.

 

K&W is here to protect you and your business.

 

*Based on the Florida Dept. of Financial Services Investigative & Forensic Services/Bureau of Workers’ Compensation Fraud & Division of Workers’ Compensation Joint Report to the President of the Florida Senate & the Speaker of the Florida House of Representatives dated January 15, 2017.