N.Y. WCB Issues 1,000th Stop Work Order

The New York Workers' Compensation Board (WCB) said it has issued its 1,000th stop work order less than 14 months since it was given the authority to issue such orders.

Under workers' compensation legislative reforms approved last year, the WCB chairperson was granted the authority to close businesses that do not have proper workers' compensation insurance coverage. Employers can apply to the WCB to lift the stop work order once they agree to restitution and obtain the proper coverage.

The WCB said it issued its first stop work order on July 17, 2007.

Stop work orders have resulted in a total of $7 million in penalties for businesses that were in violation, including $5.49 million in penalties to businesses that did not have the mandatory insurance protection for injured workers, said the WCB.

Penalties are placed in the Uninsured Employers Fund, which pays the claims of injured workers whose employers do not carry the required insurance, the WCB explained.

In June, the WCB noted, the penalty for failing to maintain insurance coverage was increased to $2,000 for every 10 days out of compliance, up from the $1,000 set in the 2007 Workers' Compensation Reform Act. Previously, the noncompliance penalty was $250 for every 10 days.

"The stop work order is an important component of the 2007 reform effort because it demonstrates New York's commitment to protecting workers," WCB Chairman Zachary S. Weiss said. "The public can expect our compliance staff to aggressively enforce the law that says businesses in this state must carry insurance to protect its workers. It's the right thing to do."