Stop Work Orders and Misrepresentation of Employees

Friday, June 12 2009 - workers-compensation, news, premium-audit

When performing a premium audit one of the hardest things for an auditor to do is distinguish between independent contractors and subcontractors performing work for an insured.  Besides legality, auditors may fell intimidated by forceful individuals that want their contracted labor left off the audit for premium purposes.  In a step that may have a direct affect on these audits, the NJ legislation has passed a bill giving the director of the Division of Workers' Compensation power over certain contractors.  The bill states that the director has the ability to issue stop work orders against contractors that misrepresent workers as independent contractors with regards to workers compensation premiums. The bill awaits approval from the governor.  The bill can be found on the website http://www.njleg.state.nj.us, assembly number 3569.