Employers dodging workers’ compensation premiums in Washington can expect to face significant new consequences from the state’s Department of Labor & Industries (L&I). The department said any construction firm caught with workers, but no current L&I workers’ compensation account, can be served a Stop Work Order (SWO).
A SWO is a legal notice requiring an employer to immediately stop work and remain stopped until the employer comes into compliance with state requirements.
Issuing Stop Work Orders to employers who don’t pay their workers’ comp premiums was a recommendation of the Underground Economy Task Force, and was passed by the 2009 Legislature, L&I said.
An employer who receives a SWO has 10 days to request reconsideration. During reconsideration, an employer may resume work by posting a bond in the amount of $5,000 or $1,000 per worker, whichever is greater.
The SWO may be issued on a specific worksite location, stopping work on that worksite only. The SWO also may be served on an employer, stopping work on all of that employer’s worksites.
Failure to comply with a SWO carries a penalty of $1,000 per day.
“The Stop Work Order gives us a powerful tool to stop employers who are operating illegally,” said Carl Hammersburg, manager of L&I’s Fraud Prevention and Compliance Program. “We are trying to level the playing field for those honest contractors out there who complain about losing bids to shady contractors dodging workers’ comp premiums.”
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