Section 440.107, F.S., requires the Department to enforce workers’ compensation coverage requirements and to issue stop-work orders, penalty assessment orders, and any other orders necessary for the administration of this section.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Workers’ Compensation

RULE NO.:RULE TITLE:

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

PURPOSE AND EFFECT: Section 440.107, F.S., requires the Department to enforce workers’ compensation coverage requirements and to issue stop-work orders, penalty assessment orders, and any other orders necessary for the administration of this section.

SUMMARY: The proposed amendment to paragraph 69L-6.025(4)(b), F.A.C., will allow employers an additional opportunity to remain compliant with their payment agreement schedules by increasing the number of times the Department will rescind an Order Reinstating Stop-Work Order from two to three in any one case. The proposed amendment to paragraph 69L-6.025(7)(c), F.A.C., will allow employers whose Reinstatement of Stop-Work Orders have been rescinded, the opportunity to enter into new payment agreements after making three monthly payments of the original agreed amount. Currently, the employer is required to make six monthly payments of the original agreed amount after the rescission of the Reinstatement of the Stop-Work Order prior to entering into a new payment agreement. Reducing the number of payments required from six to three will shorten the timeframe for entering into a new payment agreement.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein:

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 440.107(9), 440.591 FS

LAW IMPLEMENTED: 440.107(7) FS

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Tuesday, May 8, 2018, at 9:30 am

PLACE: Hartman Building, Room 102, 2012 Capital Circle SE, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Pam Macon, telephone: [phone], email: [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Pam Macon, Chief, Bureau of Compliance, Division of Workers’ Compensation, address: 2012 Capital Circle SE, Tallahassee, FL, telephone: [phone], email: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

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

(1) through (3) No change.

(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 under 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 times twice.

(c) No change.

(5) through (6) No change.

(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) through (b) No change.

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

(d) No change.

(8) through (11) No change.

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

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Pam Macon, Chief, Bureau of Compliance

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jimmy Patronis, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: April 9, 2018

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 5, 2018