Stop Orders are proving to be an extremely effective tool to enforce workers' compensation laws. State law was enacted on January 1, 2011, giving CSLB legal authority (Business and Professions Code section 7127) to issue them. Stop Orders halt work at active job sites when unlicensed individuals and licensed contractors are found not to be carrying workers compensation (WC) insurance or have claimed to be exempt from the insurance requirement when, in fact, they have workers.
CSLB Enforcement staff and district attorney investigators work in teams and visit construction sites to verify WC compliance. A CSLB investigator will issue an administrative citation to an uninsured licensee for filing a false exemption from required WC insurance as well as a Stop Order that precludes the licensee from having employees perform any additional work until a valid WC policy has been obtained. The DA investigator will issue the licensee a Notice to Appear (NTA) in Superior Court to answer to criminal charges for failing to secure WC.
If the contractor is unlicensed, he/she will be issued an NTA for contracting without a license in addition to the WC violation. Failure to comply with a Stop Order is a misdemeanor, punishable by imprisonment in county jail or by a fine, or both. In addition, employees are entitled to 10 days' wages for work lost due to the Stop Order.
All licensees are required to provide CSLB with a copy of their WC insurance policy or file an exemption from WC that is signed under penalty of perjury that they have no employees. If CSLB determines an exemption from WC either was filed falsely or is no longer valid because a licensee has employees, the license is suspended in 30 days unless the licensee obtains a valid WC policy or provides confirmation that he/she no longer employs workers.
If you are a licensee who has previously filed an exemption from WC but now has a WC policy, do not rely on the insurance company to notify the board. Please check your license history on CSLB's website at Instant License Check, and if board records still indicate an exemption from WC, please fax a copy of your WC certificate to 916.255.4023. For more information, contact CSLB's Workers' Compensation Unit at 916.255.1104.