What a Stop-Work Order Actually Does
A stop-work order (SWO) issued by the Florida Department of Financial Services, Division of Workers' Compensation, is not a warning. It is an immediate, statewide cease of all business operations. When the inspector hands you the order, you stop. Every job site. Every crew. Every contract. That afternoon. Not when the current job finishes. Not after you talk to your attorney. Now.
This surprises contractors who think an SWO applies only to the job site where the inspector appeared. It does not. The order is statewide. A roofing company working three jobs in three counties stops all three the moment the order is issued. Operating after receiving an SWO results in additional penalties on top of the original assessment.
How DFS Finds You
The Division of Workers' Compensation uses several methods to identify non-compliant employers. Random job site inspections are common - inspectors visit active construction sites and check coverage for every worker present. But the inspection is not the only trigger.
Other ways employers get caught: tips from competitors or former employees, injury reports that surface a coverage gap, building permit pulls that get cross-referenced against the coverage database, contractor license applications and renewals, complaints from subcontractors, and referrals from other state agencies. Florida has a centralized coverage verification system - any worker, inspector, or agency can look up whether a business has active coverage in real time.
The Two Documents You Receive
When a stop-work order is issued, you receive two separate documents. The first is the Stop-Work Order itself - the legal directive to cease operations. The second is the Order of Penalty Assessment - the calculation of how much you owe.
Do not confuse lifting the order with resolving the penalty. You can get back to work by obtaining coverage and filing an Affidavit of Compliance. But the penalty follows separately and must be paid or negotiated independently. Some contractors get the order lifted and then neglect the penalty, only to discover later that DFS has referred the matter for collection or criminal review.
How the Penalty Is Calculated
The penalty formula is straightforward and the results are often shocking to contractors who thought they were saving money by going without coverage.
The base penalty is $1,000 per day of non-compliance - calculated from the date coverage was first required, not the date the inspector showed up. If you have been operating a 4-person framing crew for 6 months without coverage, the calculation starts on the day the first employee was hired, not the day of the inspection. Six months is roughly 180 days. That is $180,000 before any other factors are applied.
There is a penalty cap: the penalty cannot exceed two times the amount of premium that should have been paid during the period of non-compliance. For some contractors with lower-rated work classifications, this cap reduces the penalty significantly. For high-rate classifications like roofing (5551), the 2x premium cap may be higher than the $1,000/day calculation - so DFS uses whichever produces the larger number.
| Scenario | Days Without Coverage | Base Penalty | Note |
|---|---|---|---|
| Framing crew, 2 employees, 60 days | 60 | $60,000 | Subject to 2x premium cap |
| Roofing crew, 3 employees, 90 days | 90 | $90,000 | High-rate class code |
| General contractor, 5 employees, 1 year | 365 | $365,000 | Cap often applies here |
How to Get the Order Lifted
There are three steps to clearing a stop-work order and getting back to work:
- Obtain valid workers' comp coverage. Coverage must be active, not just applied for. A PEO can bind coverage the same day you call. A standard carrier may take longer. Same-day coverage through a PEO is a real option - see our instant quote tool to start.
- Pay the assessed penalty in full or establish a payment plan. DFS will accept payment plans - you do not have to pay the entire penalty to get the order lifted. However, the payment plan must be formally approved before DFS issues the release.
- File an Affidavit of Compliance with DFS. Once coverage is in place and the penalty is resolved (or a payment plan is approved), you file the affidavit with the Division. The order can be formally released within 24 to 48 hours of compliance.
What Happens After the SWO Is Lifted
Getting the order lifted is not the end of the matter. Your business goes on the DFS public compliance database, which is searchable by anyone - including general contractors who check sub compliance before awarding contracts. Some GCs will not hire a sub with an SWO history. Some will hire you after a period of demonstrated compliance. Others will ask for documentation of the resolution.
Standard market insurance carriers will also ask about SWO history when you apply for coverage in the future. A prior SWO makes standard market coverage harder to get and sometimes impossible. PEO programs, which pool risk across many employers, are generally more accessible for contractors with compliance history issues. This is another reason a PEO is often the practical path forward after an SWO.
Repeat violators, or cases involving large payroll fraud or fabricated certificates of insurance, can be referred for criminal prosecution. DFS investigates these cases seriously and works with state attorneys on prosecution.
Contesting the Order
You have the right to request a formal administrative hearing to contest the stop-work order or the penalty assessment. However - and this is critical - the order remains in effect during the contest period. You cannot continue operating while the hearing is pending. If you believe the order was issued in error (for example, DFS missed existing coverage or miscalculated the penalty start date), consult an attorney while simultaneously resolving the coverage issue. There is no benefit to waiting on coverage while you prepare a challenge.
Frequently Asked Questions - Stop-Work Orders
Related Resources
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SWO Resolution Steps
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