A general contractor must maintain workers' compensation insurance coverage for all employees. What is the penalty for operating without required workers' compensation coverage in Florida?
Correct Answer
B) Stop work order and $1,000 per day plus $1,000 per employee
Florida law requires a stop work order and imposes penalties of $1,000 per day the violation continues plus $1,000 per employee working without coverage. This ensures compliance with worker protection requirements.
Why This Is the Correct Answer
Florida Statute 440.107 establishes severe penalties for operating without workers' compensation coverage to ensure worker protection. The law mandates an immediate stop work order to halt all construction activities. Additionally, it imposes dual financial penalties: $1,000 per day for each day the violation continues, plus $1,000 for each employee who worked without proper coverage. This comprehensive penalty structure ensures rapid compliance and protects workers from potential injury without insurance coverage.
Why the Other Options Are Wrong
Option A: $1,000 fine per employee
This option only addresses the per-employee penalty ($1,000) but completely omits the daily penalty component and the mandatory stop work order, making it an incomplete representation of Florida's actual penalty structure.
Option C: $500 per day until coverage is obtained
This option significantly understates the financial penalties at only $500 per day and fails to include both the per-employee penalty ($1,000 per employee) and the mandatory stop work order required by Florida law.
Option D: Suspension of contractor license only
While license suspension may be a consequence, this option ignores the immediate financial penalties and stop work order that are the primary enforcement mechanisms under Florida Statute 440.107.
Memory Technique
Think 'STOP-1000-1000': STOP work order, plus $1,000 per day, plus $1,000 per employee. The penalties are as serious as the protection workers need.
Reference Hint
Florida Statute 440.107 - Workers' Compensation Law, Chapter on Penalties and Enforcement
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