The New York Workers' Compensation Board (WCB) said it hasissued its 1,000th stop work order less than 14 months since it wasgiven the authority to issue such orders.

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Under workers' compensation legislative reforms approved lastyear, the WCB chairperson was granted the authority to closebusinesses that do not have proper workers' compensation insurancecoverage. Employers can apply to the WCB to lift the stop workorder once they agree to restitution and obtain the propercoverage.

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The WCB said it issued its first stop work order on July 17,2007.

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Stop work orders have resulted in a total of $7 million inpenalties for businesses that were in violation, including $5.49million in penalties to businesses that did not have the mandatoryinsurance protection for injured workers, said the WCB.

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Penalties are placed in the Uninsured Employers Fund, which paysthe claims of injured workers whose employers do not carry therequired insurance, the WCB explained.

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In June, the WCB noted, the penalty for failing to maintaininsurance coverage was increased to $2,000 for every 10 days out ofcompliance, up from the $1,000 set in the 2007 Workers'Compensation Reform Act. Previously, the noncompliance penalty was$250 for every 10 days.

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"The stop work order is an important component of the 2007reform effort because it demonstrates New York's commitment toprotecting workers," WCB Chairman Zachary S. Weiss said. "Thepublic can expect our compliance staff to aggressively enforce thelaw that says businesses in this state must carry insurance toprotect its workers. It's the right thing to do."

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