No insurance, no exemptions, no problem …right?
Wrong! If you are in the construction industry operating without insurance or an exemption or operating in a non-construction industry maintaining more than 3 employees you are out of compliance. Every day, dozens of insurance investigators descend upon New York jobsites looking for violators. They conduct investigations, administer oaths and affirmations, and issue multiple records requests. Do not be fooled into thinking that either you are too small of a business or that you are so far down the contractor/sub contractor chain of command that you will not be caught. To date, over 11,000 stop work orders have been issued to individuals and companies that did not think they would be caught. Explore our expert’s section for assistance in getting into compliance and staying in compliance. Also see our testimonials from other clients and business networks.
Can I go to jail?
The answer is yes! If you continue to work while under a stop work order, the State can fine you up to $1,000 dollars a day and arrest you on felony charges. It is advisable to call someone who knows the process from beginning to end so that you can avoid these pitfalls.
How many days do I have to respond?
The initial records request that accompanies the stop work order states that you have 5 days to provide records. However, you actually have 10 business days before the state can harm or issue you a penalty. After the imputation has been issued you then have and additional 21 days to provide records that will be used to calculate your actual penalty. When this new penalty is calculated based on your records the old imputed penalty is disregarded. So in total you have almost 31 days to review your records if needed before any permanent penalty action takes place against your company. Use this time wisely.
How much will this cost my company?
Penalties start at one $1000 dollars and can run into the millions. Each case is different and fines are soley based on the interpretation of your company’s individual records. Be weary of any one that claims they know your penalty amount without having viewed your records. It would be wise to have a professional review your records before turning them over to any party that does not have your company’s best interest in mind. Any records you provide to the state will be used against you as evidence.
Can my penalty be lowered?
It is possible to lower your penalty and/or revoke your stop work order once it has been issued. Depending on certain factors that may arise in your audit and the circumstances involving the issuance of your stop work order, you may be afforded these options. However, you must first be issued an Amended Penalty Order (APO). If you or your representative feels that you have been overcharged or that the stop work order was issued with no legal basis, you will have 21 days after receiving the APO to file a petition with the Division of Administrative Hearings. If you or your representative can specifically show that your position is valid and the State cannot produce evidence to support their position, the administrative law judge will decide in your favor. APO’s have been lowered by hundreds of thousands of dollars.
