CWS 3.0: March 7, 2012

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News: Misclassification Results in “Stop Work” Orders

Between Jan. 26 and Feb. 23, the Connecticut Department of Labor ordered 19 companies to stop work at construction sites because of employees misclassified as independent contractors, the department reported last week. In addition to stopping work, the companies can also face a civil penalty of $300 a day for each day they don’t carry workers’ compensation coverage.

The firms ordered to stop work are: EJ Construction, Ironia Stucco, D&B Partners LLC, American Dismantling dba D&B Partners LLC, Avilik Inc., Flagg World, M&M Construction, Pillar Construction, TF Andrews, Brothers Contracting, Continental Tile, Kitchen Classics, Avani Stone, East Coast Installation, CT Construction, MCK Construction, ST Floor Covering, MJ Marchia and Deanes Inc.

Companies that are issued "stop work" orders have 10 days to appeal. They can resume work once they submit proof of appropriate coverage.

Overall, the agency inspected 145 construction sites in the past 12 months, and reviewed the records of 620 contractors, the agency reported last week. Those inspections resulted in 245 “stop work” orders and $250,000 has been collected in civil penalties for misclassification. Referrals have also been made to the Department of Revenue Services and the Labor Department’s Tax Division audit unit for further investigation.

The Connecticut Department of Labor has information on its website to educate the public and the business community about independent contractor compliance. It is at www.ct.gov/dol.

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