(1) Under Section 440.107(7)(b), F.S., Stop-Work Orders or Orders of Penalty Assessment issued against a corporation, limited liability company, partnership, or sole proprietorship shall be in effect against any successor corporation or business entity that has one or more of the same principals, limited liability company members, or officers as the predecessor corporation or business entity against which the Stop-Work Order was issued and are engaged in the same or equivalent trade or activity.

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Terms Used In Florida Regulations 69L-6.031

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
    (a) For employers engaged in the construction industry, a corporation, limited liability company, partnership, or sole proprietorship and the successor corporation or business entity that has been issued a Stop-Work Order or Order of Penalty Assessment, are engaged in the same or equivalent trade or activity if they each perform or have performed business operations that include operations described in at least one classification code listed in Fl. Admin. Code R. 69L-6.021
    (b) For employers engaged in the non-construction industry, a corporation, limited liability company, partnership, or sole proprietorship and the successor corporation or business entity that has been issued a Stop-Work Order or Order of Penalty Assessment, are engaged in the same or equivalent trade or activity if they each perform or have performed business operations that include operations described in at least one classification code that is in the manufacturing, goods and services, or the office and clerical industry group listed in subsection (6) of this rule.
    (c) For employers that perform business operations described by one of the classification codes in the miscellaneous industry groups listed in subsection (6) of this rule, a corporation, limited liability company, partnership, or sole proprietorship and the successor corporation or business entity that has been issued a Stop-Work Order or Order of Penalty Assessment, are engaged in the same or equivalent trade or activity if they each perform or have performed the same business operation described in one of the classification codes contained in the miscellaneous industry groups.
    (2) A Stop-Work Order or Order of Penalty Assessment issued against a corporation, limited liability company, partnership, or sole proprietorship becomes effective against a successor corporation or business entity that has one or more of the same principals, directors, officers, limited liability company members, partners, or shareholders with a 10% or greater interest, including any “”affiliated person”” as defined in Florida Statutes § 440.05(15), in common with the predecessor corporation or business entity against which the original Stop-Work Order or Order of Penalty Assessment was issued and is engaged in the same or equivalent trade or activity, through service on the successor corporation or business entity of an order applying a Stop-Work Order or Order of Penalty Assessment to successor corporation or business entity. The order applying a Stop-Work Order or Order of Penalty Assessment to successor corporation or business entity remains in effect until withdrawn by the Department.
    (3) In the event one of the following three criteria is satisfied, the Department will withdraw an order applying a Stop-Work Order or Order of Penalty Assessment:
    (a) The Department must have released the Stop-Work Order or Order of Penalty Assessment in effect against the predecessor corporation, limited liability company, partnership, or sole proprietorship that has one or more of the same principals, officers, directors, limited liability company members, partners, or shareholders with a 10% or greater interest, in common with the successor corporation or business entity.
    (b) The principal, officer, director, limited liability company member, partner, or a shareholder with a 10% or greater interest in the successor corporation or business entity against which the Stop-Work Order or Order of Penalty Assessment has been served, must formally disassociate himself or herself from the predecessor corporation, limited liability company, partnership, or sole proprietorship by providing the Department with the following:
    1. Records obtained from the Florida Department of State, Division of Corporations, indicating that no person or entity affiliated with the successor corporation or business entity holds any position as an officer, director, limited liability company member, or shareholder with a 10% or greater interest in the predecessor corporation or business entity.
    2. A written statement from the current management of the predecessor corporation or business entity affirmatively acknowledging that no person affiliated with the successor corporation or business entity is engaged in any policy or decision-making capacity with the predecessor corporation or business entity.
    3. Copies of the successor corporation or business entity’s business records for review by the Department.
    (c) The successor corporation or business entity and the predecessor corporation, limited liability company, partnership, or sole proprietorship that has been issued a Stop-Work Order or Order of Penalty Assessment, must no longer be engaged in the same or equivalent trade or activity, as determined by the Department, pursuant to the codes from subsection (6) of this rule.
    (4) An order applying a Stop-Work Order or Order of Penalty Assessment shall take effect when served upon the employer or, for a particular worksite, when served at that worksite.
    (5) Under Section 440.107(7)(c), F.S., the Department shall assess a penalty of $1,000 per day against an employer for each day that the employer conducts business operations in violation of an order a applying a Stop-Work Order or Order of Penalty Assessment.
    (6) List of class codes, descriptions, and industry groups. A complete description of class codes is contained in the SCOPES® Manual Classifications (October 2005) published by the National Council on Compensation Insurance, Inc. (NCCI) and is available for viewing through the Division of Workers’ Compensation, Bureau of Compliance, 1579 Summit Lake Drive, Tallahassee, FL 32317 or a copy is available, for a fee, by calling NCCI at 1(800)622-4123. The SCOPES® list of codes, descriptions and industry groups is as follows:
    (a) Industry Group: Manufacturing

Class
Description
1.
1430
Smelting, Sintering Or Refining – Lead & Drivers
2.
1438
Smelting, Sintering Or Refining – Metels – Not Iron Or Lead – NOC & Drivers
3.
1452
ORE Milling & Drivers
4.
1463
Asphalt Works Operated By Paving Contractors – Permanent Location & Drivers
5.
1472
Distillation – Wood & Drivers
6.
1473
Turpentine Or Resin MFG – Steam Or Non-destructive Process & Drivers
7.
1642
Lime MFG
8.
1699
Rock Wool MFG
9.
1701
Cement MFG
10.
1741
Flint Or Spar Grinding & Drivers
11.
1747
Emery Works & Drivers
12.
1748
Abrasive Wheel MFG & Drivers
13.
1803
Stone Cutting Or Polishing NOC & Drivers
14.
1852
Asbestos Goods MFG
15.
1853
Mica Goods MFG & Mica Preparing
16.
1860
Abrasive Paper Or Cloth Preparation
17.
1924
Wire Drawing Or Cable MFG – Not Iron Or Steel
18.
1925
Die Casting MFG
19.
2001
Cracker MFG
20.
2002
Macaroni MFG
21.
2003
Bakery & Drivers, Route Supervisors
22.
2014
Grain Or Feed Milling
23.
2016
Cereal Or Bar MFG
24.
2021
Sugar Refining
25.
2039
Ice Cream MFG & Drivers
26.
2041
Candy, Chocolate, And Confection MFG
27.
2065
Milk Products MFG NOC
28.
2070
Creamery Or Diary & Route Supervisors, Drivers
29.
2081
Butchering
30.
2089
Packing House – All Operations
31.
2095
Meat Products MFG NOC
32.
2105
Fruit Packing
33.
2110
Pickle MFG
34.
2111
Cannery NOC
35.
2112
Fruit Evaporating Or Preserving
36.
2114
Oyster Processing
37.
2119
Citrus Products Processing
38.
2121
Brewery & Drivers
39.
2130
Spirituous Liquor Distillery
40.
2131
Spirituous Liquor Bottling
41.
2150
Ice MFG Or Ice Dealers
42.
2156
Bottling – Not Carbonated Liquids – Or Spirituous Liquors & Route Supervisors
43.
2157
Bottling NOC & Route Supervisors, Drivers
44.
2172
Cigarette MFG
45.
2174
Tobacco Rehandling Or Warehousing
46.
2211
Cotton Batting, Wadding Or Waste MFG
47.
2220
Yarn Or Thread MFG – Cotton
48.
2286
Wool Spinning And Weaving
49.
2288
Felting MFG
50.
2300
Plush Or Velvet MFG
51.
2302