The Department of Labor has promulgated
rules for the administration of penalties due to the failure to comply
with the Vermont Workers’ Compensation Statute or Rules. The proposed rules completely replace the
prior administrative penalties. The
comment period ends September 26, 2014.
Comments may be sent to J. Stephen Monahan, Vermont Department of Labor,
PO Box 488, Montpelier, Vermont 05601-0488.
The Commissioner’s proposal has a number of components:
The Commissioner, after a citation and hearing, may assess an
administrative penalty against a person or entity that violates: the workers’
compensation statute, rules adopted by the Commissioner, or an order issued by the
Commissioner.
Citations may be served upon employees, employers,
attorneys, medical providers, insurers or representatives of insurers when the
Commissioner has found that the person or entity refused or neglected to:
Comply with the workers’ compensation act;
Comply with the Department’s rules;
File in a complete and timely fashion any
reports that are required by the act, rule, or order; or
Comply with any interim order issued by the
Department.
Additionally a citation may issue if a person has willfully
made a false statement or representation for the purpose of any benefit or
payment for him or herself, or any other person.
The proposed penalties are specifically referenced,
including penalty reduction factors.
The proposed penalties include: employers who willfully
make a false statement or representation for the purpose of obtaining a lower
workers’ compensation premium shall be prevented from working with the State of
Vermont for up to three years. An employer who fails to maintain workers’
compensation insurance shall be fined $100 a day for the first seven days of
failure to have insurance and $150 a day per day thereafter. The proposed rules also provide that any
employer must ensure that any subcontractor it hires has workers’ compensation
insurance and is in compliance with the statute. In addition to financial penalties, employers
who fail to comply with the requirement of obtaining insurance may be cited
with a stop-work order.
An employer that fails to submit a first report of injury
within 72 hours of “notice or knowledge of a claimed work related injury
causing an absence of one day or more, or necessitating medical attendance,” shall
be fined $100.00 for each violation.
Failure to give the employee a copy of the form will result in a $50.00
fine.
An employer or carrier who fails to submit a required form
to the Department shall be fined $100.00 for each violation. Proposed Rule
45.5630 lists a number of additional fines for failure to timely file required
reports under the statute.
Non-compliance with an interim order of the Department of
Labor shall result in a penalty of $500 per occurrence, plus $100 for every day
of non compliance after the date set for compliance. The total penalty shall not exceed $5,000.00.
A self insured employer or insurance carrier who fails to
ensure its agents or subcontractors comply with the statute and rules, or with
an order of the Commissioner shall be fined $500.00 for each offense. In addition the agent or subcontractor shall
be assessed a penalty of $50.00 for each offense.
