If your construction company lacks the proper insurance coverage for your employees, the Florida Department of Financial Services may investigate your business, issue a stop-work order, and require you to pay excessive citations and penalties. If you are experiencing any of these types of issues, contact a stop-work order attorney in Florida immediately.
Regardless of whether you have an established business or are just starting out, an attorney can ensure that you are compliant with employment laws. Whether it’s employee classifications, recordkeeping, or failing to have workers’ compensation insurance coverage, if you fail to perform your due diligence as a business owner, you may experience a devastating setback including a stop-work order in Florida.
Common Reasons Why an Employer Receives a Stop-Work Order
A stop-work order can be issued for a variety of reasons. They often stem from a payment dispute, unsafe work conditions, or a permitting issue. However, the most common reason a stop-work order is issued is because an employer fails to have workers’ compensation insurance coverage in place before an investigation. If a small construction business receives a stop-work order, this can have a crippling effect on the business resulting in bankruptcy. Larger businesses can be impacted severely, too, considering they may have multiple locations and each of those entities can be impacted by a stop-work order.
Stop-Work Orders Halt Business Activities
By design, a stop-work order is utilized to halt an employer’s business practices until they are compliant in the areas they were in violation of. If you own a construction business and have received a stop-work order, work on a project will not only cease, you will also be required to pay significant penalties for your infraction until the issue is resolved. When it comes to stop-work orders, the best thing to do is to consult an attorney immediately.
What’s the Process of Receiving a Stop-Work Order Like?
Whether it’s a former employee or a competitor, if the Department of Financial Services receives a complaint, they will follow up with an investigation. Employers will receive a request from an investigator to review company records, payroll records, and employee information. If the investigator deems that willful violations occurred or if the employer fails to comply with the agency’s suggested corrective action, the business may be issued a stop-work order.
Generally, the business can not conduct any activities until they have corrected the issue. Further, the financial penalties associated with a stop-work order can add up fast, and businesses can easily lose thousands of dollars in a matter of days. In any stage of an investigation, you should contact an attorney to mitigate any of these potential damages.
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.