Connecticut Department of Labor Issues Stop Work Orders to 25 Companies

Wethersfield, CT (WorkersCompensation.com) - The Connecticut Department of Labor's Division of Wage and Workplace Standards issued Stop Work orders to 25 companies working at construction project
sites in Stamford during the period of October 24 to January 8, State Labor Commissioner Sharon M. Palmer announced today.

“Businesses that fail to recognize their workers as employees of their company are able to avoid providing certain protections such as workers' compensation, which ensures that their employees are safe in the event they are injured while on the job,” Palmer noted. “Unfortunately, when an employer does not pay its fair share and a worker gets hurt on the job or is laid off, the state's taxpayers ultimately foot the bill.”

According to Palmer, Stop Work orders are levied against companies that misclassify workers as independent contractors with the intent of avoiding their obligations under federal and state employment laws covering such matters as workers' compensation, unemployment taxes and payroll reporting. Stop Work orders result in the halting of all activity at a cited company's worksite, as well as a $300 civil penalty for each day the company does not carry workers'
compensation coverage as required by law.

A total of 872 Stop Work Orders have been issued since October 2007 when the enforcement program first began. In the past 12 months, the agency has inspected 103 construction projects and reviewed the records of 298 contractors, and 192 Stop Work orders have been issued. Of that total, 93 violators were identified as out‐of‐state contractors.

Companies issued a Stop Work Order have 10 days to appeal the decision. Once a cited employer provides proof of appropriate coverage, work at that site is allowed to resume. As a result of these Stop Work orders, $513,000 has been collected in civil penalties for the misclassification of workers and referrals have been made to the Department of Revenue Services and the Labor Department's Tax Division audit unit for further investigation.

“It is an employer's responsibility, under the law, to ensure that their employees have adequate coverage while at work,” Palmer added. “When employers fail to provide these protections, it also creates an unfair situation for those companies that are operating responsibly and following the rules.”

The agency has developed an online site to help educate the public and members of the business community about misclassifications laws. Located under the agency's website at www.ct.gov/dol it also provides contact information for those wishing to report any suspicions of misclassification.

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