In this two-part article, we are offering practical tips to construction employers to ensure they are in compliance with the rules and regulations governed by the Division of Workers’ Compensation. If you violate workers’ compensation laws, you could incur significant penalties or receive a stop work order in Florida. If you have received either a citation or a stop work order from the Division of Workers’ Compensation, it’s critical that you contact Cotney Construction Law today.
In the first section, we focused on a few things that every employer in the State of Florida must consider when hiring workers on a project. In this section, a stop work order attorney in Florida will offer you some more advice on ways to prevent workers’ compensation violations from transpiring at your jobsite.
Are You Covered in Florida?
For contractors, it’s important to remember that workers’ compensation laws are dependent on the state you are working in. For example, if you obtain workers’ compensation coverage in Florida, but a portion of a project is required to be performed in another state then you need to obtain coverage in that state to perform that segment of the work.
The Importance of a General Ledger
Every construction business owner should have a general ledger that meticulously covers all payments and expenses for that specific project. Moreover, this ledger should identify what state the work was performed in. This ledger helps ensure that the work performed was in compliance with workers’ compensation laws.
Keeping Financial Records
Along with this detailed general ledger, construction companies need to keep close records of all of their financial aspects including cash withdrawals and reimbursements. If your company fails to keep sufficient records of your business interactions, this will be imputed in your workers’ compensation penalty by the Division of Workers’ Compensation.
With any construction legal matter, contractors and business owners need the strength of a clearly worded contract. When agreeing to a written agreement with a subcontractor, you should include a provision that confirms on the subcontractor’s end that they agree to be in compliance with workers’ compensation laws. In addition, this legal document should detail that any penalty that the employer experiences because of the subcontractor’s negligence should be reimbursed by the subcontractor. Although this provision may not prevent a penalty or stop work order from being issued to the employer, it at least provides the employer with a possible legal route to take in order to recover those 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.