Practical Advice for Employers on Stop-Work Orders Part 1
Employers in the State of Florida are required to maintain workers’ compensation insurance for their employees if they have employees on their payroll. Specifically, construction industry employers with one or more employees must have coverage and non-construction industry employers with four or more employees must have coverage. Contractors must ensure their subcontractors have coverage before they are allowed to begin work.
If a business is found noncompliant, the Division of Workers’ Compensation (DWC) may issue a stop-work order in Florida, which will require the business to cease operations. For an in-depth understanding of employer rights and requirements, please review Chapter 440 of the Florida Statutes. This section will focus on avoiding a stop-work order. Read part two learn how to handle a stop-work order.
Avoiding a Stop-Work Order
A stop-work order can be financially devastating to a business owner, especially those with smaller businesses. A stop-work order is to be taken seriously as the DWC views noncompliance with workers’ compensation requirements as an immediate danger to public health, safety, and welfare. Avoid risking the lives of your employees by doing the following:
Secure Workers’ Compensation
Safeguard your business by either purchasing a workers’ compensation insurance policy, entering an agreement with a leasing or staffing company that will provide workers’ compensation coverage, or (depending on eligibility) obtaining a workers' compensation exemption.
Classify Employees Correctly
Classify employees and independent contractors correctly. Chapter 440, F.S. has very specific criteria for who can be classified as an independent contractor.
Set Up a Reliable Payroll System
Pay all required taxes, deductions, withholding, etc., to ensure your business meets all payroll requirements in case of an audit or DWS investigation.
If you would like to speak with a stop work order attorney in Florida, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.