Florida Stop-Work Order Penalty Calculator

Last reviewed: November 2026, by Cheap Workers Comp Florida, licensed Florida agency DFS #L077476

How Florida Calculates a Stop-Work Order Penalty

When the Department of Financial Services, Division of Workers' Compensation, finds that an employer has not secured the workers' compensation coverage Chapter 440 requires, section 440.107(7)(a) directs it to issue a stop-work order requiring the employer to cease all business operations. The order also covers an employer that fails to produce the business records the Division asks for within 21 days of a written request. Along with the order comes a penalty assessment, and the formula for that penalty is written into the statute.

Under section 440.107(7)(d)1., the Division assesses a penalty equal to 2 times the amount the employer would have paid in premium when applying approved manual rates to the employer's payroll during the period it was required to carry coverage but did not, or $1,000, whichever is greater. In plain terms: the Division figures out what your workers' comp policy would have cost for the uninsured stretch, then doubles it.

The calculator above follows the same shape. It takes the payroll you paid while uninsured, applies the current Florida rate for the class code you pick (per $100 of payroll), and doubles the result. For example, roofing (code 5551) currently carries a filed rate of $6.75 per $100 in our database, so $120,000 of uninsured roofing payroll works out to about $8,100 in premium and an estimated penalty of about $16,200.

The look-back period: 12 months, or 24

The penalty does not reach back indefinitely. The statute measures the uninsured period over the preceding 12-month period. The look-back stretches to the preceding 24-month period when the Division determines that the employer materially understated or concealed payroll, or when the employer has previously been issued a stop-work order or an order of penalty assessment. That is why the calculator asks whether either applies. If you were uninsured for 18 months and neither condition applies, only the most recent 12 months of payroll count toward the estimate.

Credits and reductions for first-time employers

Section 440.107(7)(d)1. gives employers who have not previously been issued a stop-work order or penalty assessment three ways to bring the number down:

• Initial premium credit. The Division credits the initial payment of the estimated annual workers' compensation premium against the penalty, once the employer documents that it now has coverage and has paid for it. Getting covered quickly is not only what lifts the order; it also shrinks the bill.
• 25% reduction for records. The final assessed penalty is reduced by 25% if the employer provides the business records required by the Division's rules within 21 days after receiving the written request.
• 15% reduction for the tutorial. The final penalty is reduced by a further 15% if the employer correctly answers at least 80% of the questions on the Division's online workers' compensation coverage and compliance tutorial within 21 days after the request. The statute says the tutorial is taken at a Division office location identified by rule.

Even after all of that, the penalty cannot drop below $1,000. The statute is explicit that the $1,000 minimum applies even if the calculated penalty after credits and reductions is less.

When records are missing: imputed payroll

The calculator assumes you can show what you actually paid. If an employer does not provide business records sufficient for the Division to determine payroll, section 440.107(7)(e) lets the Division impute payroll instead. Each employee, corporate officer, sole proprietor, or partner is assigned a weekly payroll equal to 1.5 times the statewide average weekly wage under section 440.12(2), multiplied across the period. Rule 69L-6.028 sets out the Division's procedures for imputing payroll. Imputed payroll often produces a much larger penalty than real records would, which is another reason the 21-day records deadline matters.

The $1,000-a-Day Penalty for Working Under the Order

A stop-work order means stop. Section 440.107(7)(c) requires the Division to assess a penalty of $1,000 per day for each day the employer conducts business operations in violation of a stop-work order. This is separate from, and added on top of, the 2x-premium penalty. A crew that keeps working for two weeks after the order is served adds $14,000 to the bill before anything else is considered. The calculator includes an optional field for this so you can see the effect.

The order also follows the people, not just the company name. Under section 440.107(7)(b), a stop-work order against a corporation, partnership, LLC, or sole proprietorship applies to any successor entity that shares one or more principals or officers and is engaged in the same or equivalent trade. Opening a new company to keep working does not get around the order.

Repeat violations carry more risk. The statute treats a subsequent violation within 5 years of the most recent one as a knowing act under section 440.105, the fraud and penalties section. Separately, section 440.107(7)(f) allows a penalty of $5,000 for each worker the employer represented as an independent contractor who does not meet the definition in section 440.02.

Conditional Release and Payment Plans

You do not always have to pay the full penalty before you can work again. Section 440.107(7)(a) allows the Division to issue an order of conditional release from the stop-work order when the employer:

1. has come into compliance with the coverage requirements of Chapter 440 (in other words, has real coverage in force), and
2. pays a penalty of $1,000 as a down payment, and
3. agrees to remit the rest of the penalty either in full or through periodic payments under a payment agreement schedule.

The down payment in the 2026 text of section 440.107(7)(a) is a flat $1,000, not a percentage of the penalty. If you read a different figure elsewhere, check its date against the current statute. Rule 69L-6.025 governs conditional release and the periodic payment agreement, and the Division uses its own forms for the agreed order and the payment schedule.

There are limits. An employer cannot enter into a payment agreement schedule unless it has fully paid any earlier penalty assessed under the section. And if the employer does not pay the penalty in full or enter into a payment agreement within 21 days after the first penalty assessment calculation is served, or later breaks a term of the agreement, the stop-work order is reinstated and the unpaid balance becomes immediately due.

Why Paying for Coverage Is Always Cheaper

The math in the statute is designed so that skipping coverage never pays. If your policy would have cost $10,000 for the period, the penalty is about $20,000, and the penalty buys you nothing: you still have to buy coverage going forward to lift the order, and any injury that happened while you were uninsured is still your responsibility. The "coverage would have cost" figure in the calculator is the premium for the full uninsured stretch at the current class rate, so you can see the gap directly.

Keep in mind that a real policy price includes more than the class rate. Carriers and PEOs apply their own pricing, your experience mod, and fees. The rate in this tool is the Florida filed rate for the class in our database, so it is a reasonable yardstick, not a quote. For a real number, the instant quote tool prices your actual codes and payroll.

What to Do Right Now If You Have an Order

1. Stop all business operations. Every day worked under the order adds $1,000.
2. Get coverage in force. Compliance with Chapter 440 is the first condition of any release. Coverage begins on the effective date of the policy or PEO enrollment, not the date you apply.
3. Send your records within 21 days. It protects the 25% reduction and helps avoid imputed payroll.
4. Consider the tutorial. A passing score within 21 days earns the 15% reduction for first-time employers.
5. Pay or set up a plan. The $1,000 down payment plus a payment agreement can support a conditional release; miss the 21-day window and the order is reinstated.

Our stop-work order guide covers the process in more detail, and if you have an existing policy you want priced against the market, you can upload it to beat your renewal.

Frequently Asked Questions

Related Resources

• Florida stop-work orders: how they are issued and lifted
• Workers' comp payroll estimator
• Florida officer and LLC member exemptions
• Workers' comp and 1099 contractors in Florida
• Florida workers' comp rate card
• Pay-as-you-go workers' comp

Sources

• Section 440.107, Florida Statutes (2026): Department powers to enforce employer compliance
• Section 440.02, Florida Statutes (2026): Definitions
• Rule 69L-6.025, F.A.C.: Conditional Release of Stop-Work Order and Periodic Payment Agreement
• Rule 69L-6.027, F.A.C.: Penalty Calculation Worksheet
• Rule 69L-6.028, F.A.C.: Procedures for Imputing Payroll and Penalty Calculations
• Florida Division of Workers' Compensation: Coverage Requirements