69L-6.025. Conditional Release of Stop-Work Order and Periodic Payment Agreement

(1) The requirements for issuance of a Form DFS-F4-1602 http://www.flrules.org/Gateway/reference.asp?No=Ref-15437, Agreed Order of Conditional Release from Stop-Work Order, revised 01/23, and incorporated by reference herein, as provided for in Section 440.107, F.S., are as follows:

(a) The employer has come into compliance with the coverage requirements of Chapter 440, F.S. Compliance with the coverage requirements of Chapter 440, F.S., includes demonstration by the employer that it is no longer failing to secure the payment of compensation within the meaning of Section 440.107, F.S.

(b) The employer has paid a minimum penalty of $1,000 as a down payment and agreed to remit periodic payments of the remaining penalty amount pursuant to either Form DFS-F4-1600-A, http://www.flrules.org/Gateway/reference.asp?No=Ref-15435, Payment Agreement Schedule for Periodic Payment of Penalty, revised 01/23 (applicable in cases where the employer was issued a stop-work order), or Form DFS-F4-1600-B, http://www.flrules.org/Gateway/reference.asp?No=Ref-15436, Payment Agreement Schedule for Periodic Payment of Penalty for Order of Penalty Assessment, revised 01/23 (applicable in cases where the employer was issued an Order of Penalty Assessment). Both of the above forms are incorporated by reference herein. The aforementioned and any other forms incorporated by reference under this rule may be obtained from the Division of Workers’ Compensation’s Bureau of Compliance, 1579 Summit Lake Drive, Tallahassee, FL 32317, or from any field office.

(2) The terms and conditions of a Payment Agreement Schedule for Periodic Payment of Penalty shall be:

(a) The amount constituting the total assessed penalty amount, less the down payment, shall be referred to as the “remaining penalty.”

(b) Each monthly payment installment is due on the first day of the month in which it is due, and the employer is in violation of the Payment Agreement Schedule for Periodic Payment of Penalty if the full monthly payment installment is not received by the Department by the last day of the month in which the payment installment is due.

1. The employer shall pay the remaining penalty in up to sixty consecutive monthly installments.

2. The employer may at any time pre-pay the installments of the remaining penalty, which have not become due.

3. The first monthly payment installment shall be due on the first day of the second month following the month of issuance of either Form DFS-F4-1600-A, Payment Agreement Schedule for Periodic Payment of Penalty, (applicable in cases where the employer was issued a stop-work order), or Form DFS-F4-1600-B, Payment Agreement Schedule for Periodic Payment of Penalty for Order of Penalty Assessment, (applicable in cases where the employer was issued an Order of Penalty Assessment), and each subsequent payment installment shall be due on the first day of each consecutive month.

(c) Monthly payment installments shall be remitted to the Department’s address designated in the Payment Agreement Schedule for Periodic Payment of Penalty, or shall be remitted electronically via the Department’s online penalty payment service at http://www.myfloridacfo.com/Division/wc/.

(d) Monthly payment installments that are not remitted electronically via the Department’s online penalty payment service shall be in the form of a cashier’s check or money order only, made payable to the DFS-Workers’ Compensation Administration Trust Fund.

(e) If the employer is a corporation, only an officer of the corporation may execute the Payment Agreement Schedule for Periodic Payment of Penalty on behalf of the employer.

(f) If the employer is a business entity other than a corporation, any principal of the business entity may execute the Payment Agreement Schedule for Periodic Payment of Penalty on behalf of the employer.

(g) Failure by the employer to meet any term or condition of the Payment Agreement Schedule for Periodic Payment of Penalty shall constitute a default by the employer. Violation of any term or condition of the Payment Agreement Schedule for Periodic Payment of Penalty shall constitute a default by the employer.

(3) The Payment Agreement Schedule for Periodic Payment of Penalty becomes effective when it is executed on behalf of the employer and by the Department.

(4)(a) If an employer fails to adhere to the terms and conditions of the Agreed Order of Conditional Release from Stop-Work Order, the Stop-Work Order shall be immediately reinstated and the entire unpaid balance of the remaining penalty shall immediately become due and payable. Subsequent to the issuance of an Order Reinstating Stop-Work Order by the Department, the Department will rescind the Order Reinstating Stop-Work Order only if the employer pays the penalty in full or enters into a Payment Agreement Schedule for Periodic Payment of Penalty with the Department prior to the expiration of the twenty-one calendar day period.

(b) If an employer defaults on any of its obligations under the Payment Agreement Schedule for Periodic Payment of Penalty, the Stop-Work Order to which the penalty applies shall be immediately reinstated and the entire unpaid balance of the remaining penalty shall immediately become due and payable. Subsequent to the issuance of an Order Reinstating Stop-Work Order by the Department, the Department will rescind the Order Reinstating Stop-Work Order requiring the employer to adhere to the terms and conditions of its Payment Agreement Schedule for Periodic Payment of Penalty only if the Department receives from the employer all past due monthly payments prior to the expiration of the twenty-one day period. All past due monthly payments must be made electronically via the Department’s online penalty payment service, or by cashier check(s) or money order(s) made payable to DFS-Workers’ Compensation Administration Trust Fund and be remitted to Department of Financial Services, Revenue Processing Section, Division of Workers’ Compensation, P.O. Box 7900, Tallahassee, FL 32314-7900. The Department will not enter into another Payment Agreement Schedule for Periodic Payment of Penalty with an employer in a case where the employer has had its Stop-Work Order immediately reinstated through an Order Reinstating Stop-Work Order, and in order to be released from a Stop-Work Order that has been immediately reinstated the employer must pay the remainder of the entire penalty and show that it otherwise is in compliance with the coverage requirements of Chapter 440, F.S. The Department in any one case will not rescind an Order Reinstating Stop-Work Order more than three (3) times.

(c) “Immediately reinstated” means twenty-one (21) calendar days after an Order Reinstating Stop-Work Order is executed by the Chief Financial Officer or his or her designee and has been filed with the agency clerk of the Department.

(5) An employer that has entered into a Payment Agreement Schedule for Periodic Payment of Penalty with the Department currently in default of any of its obligations under such agreement or that has had its Stop-Work Order immediately reinstated through an Order Reinstating Stop-Work Order is ineligible for conditional release from a Stop-Work Order issued to it by the Department in a subsequent case.

(6) An employer that has been conditionally released from a Stop-Work Order and is not in default of its current Payment Agreement Schedule for Periodic Payment of Penalty is ineligible for conditional release from a Stop-Work Order issued to it by the Department in a subsequent case.

(7) At the request of an employer, the Department and an employer may enter into a new Payment Agreement Schedule for Periodic Payment of Penalty, thereby extending the payment of the outstanding penalty amount for up to sixty consecutive monthly installments, if the following criteria have been met, as determined by the Department:

(a) The employer must not be in default of its current Payment Agreement Schedule for Periodic Payment of Penalty;

(b) The employer must have submitted at least three (3) monthly payments under its original Payment Agreement Schedule for Periodic Payment of Penalty;

(c) If the employer was issued an Order Reinstating Stop-Work Order that was later rescinded, the employer must have submitted at least three (3) monthly payments under its current Payment Agreement Schedule for Periodic Payment of Penalty after the issue date of the Order Rescinding Order Reinstating Stop-Work Order; and,

(d) If a payment made by the employer was returned to the Department by the employer’s financial institution for non-sufficient funds, the employer must have submitted at least three (3) monthly payments under its current Payment Agreement Schedule for Periodic Payment of Penalty after the returned payment has been cured.

(8) The Department will enter into only one new Payment Agreement Schedule for Periodic Payment of Penalty of its most recently served penalty with an employer. The Department shall not enter into a new Payment Agreement Schedule for Periodic Payment of Penalty of its most recently served penalty with any employer that has had its Stop-Work Order reinstated, nor to any employer that has had its case forwarded to a collection agency for collection of the remaining penalty.

(9) Employers assessed penalties pursuant to Rule 69L-6.030, F.A.C. are eligible to enter into a Payment Agreement Schedule for Periodic Payment of Penalty with the Department.

(10) If an employer conducts business operations in violation of an Order Reinstating Stop-Work Order, a penalty shall be assessed against the employer pursuant to Section 440.107(7)(c), F.S. The employer to whom the Stop-Work Order or Order of Penalty Assessment is issued is responsible for notifying the Division of any change in address.

(11) An employer found conducting business in violation of an Order Reinstating Stop-Work Order may not enter into another Payment Agreement Schedule for Periodic Payment of Penalty for a penalty assessed as a result of conducting business in violation of the Order Reinstating Stop-Work Order. In order to obtain a release of the Order Reinstating Stop-Work Order, the employer must pay all penalties assessed and must provide proof of compliance with the coverage requirements of Chapter 440, F.S.

Rulemaking Authority 440.107, 440.591 FS. Law Implemented 440.107 FS. History–New 4-6-05, Amended 7-20-05, 2-6-07, 7-20-09, 9-6-15, 6-19-18, 7-18-23.