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Stop Work Orders |
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“I take a proactive approach. I explain what the law requires, what your options are, and
what the likely consequences will be. Then we form and execute a game plan that makes it easy for
the State to agree with our position and impose the outcome most favorable to you, under the
circumstances.” J. Layne Smith
The Florida Department of Financial Services, Division of Workers Compensation, is empowered to
issue stop work orders to businesses that it deems are not in compliance with the workers compensation
laws of Florida. The administrative penalty for violating a stop work order is $1,000.00 per day.
The violator is also subject to separate criminal prosecution. When an employer is issued a stop
work order, it is prohibited from engaging in any work within the State of Florida. The employer
is required to produce its last three years of business records within 5 days, which the Department
of Financial Services’ investigator uses to determine the amount of penalty to assess. Mr. Smith
helps clients through their document productions.
The penalty is 150 % of the amount that the State determines the employer should have paid for
its uninsured workers compensation insurance exposure. The stop work order remains in place until
a penalty has been assessed and paid in full, or the employer obtains a conditional release by
entering into and complying with a payment plan.
If the regulatory investigator suspects insurance fraud, then the case will be referred to the
Florida Department of Financial Services, Division of Fraud for further investigation. These
fraud investigations often result in criminal prosecutions.
Do Not Ignore a Stop Work Order--Respond ASAP
Uncollected penalties constitute a lien on the employer’s property. No corporate shield applies
to the State’s collection of a penalty. If the employer is a corporation or a limited liability
company, the people in control of it are considered the employer for the purposes of liability
and collection. Stop work orders apply to successor businesses too.
What to do in Response to a Stop Work Order
Time is of the essence. Contact J. Layne Smith so that he can determine the key facts, provide
advice, and, when necessary, perform an audit to determine what the penalty assessment should
be before, or at the same time, the employer’s business records are turned over to the state’s
investigator. It is in the employer’s best interest to have someone more knowledgeable than the
State’s investigator articulating the employer’s position, and doing everything that can be done
to limit the amount of the penalty that is assessed, and speeding up the time when the stop work
order is lifted. A prompt and intelligent handling of the administrative case can prevent
prosecution for criminal charges based upon the same conduct.
If you were not able to find the needed assistance prior to handling a stop work order and you
have been charged, J. Layne Smith is highly experienced in handling white collar criminal defense.
If the employer and the investigator cannot agree on the penalty assessment amount, J. Layne
Smith is experienced at litigating and trying administrative trials to determine the correct
penalty assessment amount. As an administrative lawyer, he advises employers how to conditionally
agree to, and enter into, a penalty assessment re-payment plan, while contesting the amount of
penalty, and obtaining a refund at the conclusion of the administrative trial.
As an attorney, J. Layne Smith has extensive experience in administrative law. Layne Smith is
available to help you resolve stop work orders.
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