By Adrian Middleton, Sword & Shield, PLLC · Updated Monday, October 19, 2026
What the section does
Section 440.107 gives the Department of Financial Services the power to enforce the coverage requirements of Chapter 440 and tells it how. Subsection (1) states the legislative intent: that the failure of an employer to comply with the workers' compensation coverage requirements is an immediate serious danger to public health, safety and welfare. That finding is why the Department does not have to prove harm before stopping a business. The Division of Workers' Compensation's Bureau of Compliance carries the section out under Rule Chapter 69L-6, Florida Administrative Code.
Subsection by subsection
| Subsection | What it says | Where it bites |
|---|---|---|
| (2) | Failing to secure coverage includes materially understating or concealing payroll, misclassifying employees, or concealing information that affects the experience modification | An employer with a policy can still be 'uninsured' for the understated payroll |
| (3) | The Department may enter and inspect any place of business at reasonable times, examine and copy records, administer oaths, issue subpoenas, and issue stop-work orders and penalty assessments | The jobsite visit, the interviews, the records request |
| (5) | Employers must keep the business records the Department's rules require | Rule 69L-6.015: current year plus two prior calendar years |
| (6) | The Department may enforce a subpoena in circuit court and recover fees | Ignoring the records subpoena |
| (7)(a) | Stop-work order within 72 hours of finding non-coverage or failure to produce records within 21 days; effective on service or posting; applies to every worksite; published for at least 5 years; conditional release on compliance, $1,000 down and a payment agreement; reinstatement if not paid or agreed within 21 days of the first penalty calculation | The order itself and the release |
| (7)(b) | Successor entities with the same owners, officers or family are liable for the penalty | Closing the company does not end it |
| (7)(c) | $1,000 per day for conducting business in violation of the order | Every day worked after service |
| (7)(d)1 | Penalty of 2 times the premium the employer would have paid over the preceding 12 months (24 months for understated payroll or a prior order), minimum $1,000; first-time employers get a premium credit, 25% off for records within 21 days, and 15% off for the tutorial | The worksheet |
| (7)(d)2 | A subsequent violation within 5 years is deemed knowing for purposes of s. 440.105 | The criminal element on a second order |
| (7)(e) | If records are not produced, weekly payroll is imputed at 1.5 times the statewide average weekly wage for each worker, officer, partner and sole proprietor | $2,036.93 per person per week in 2026 |
| (7)(f) | $5,000 for each employee misrepresented as an independent contractor | 1099 crews |
| (8) | The Department may collect the penalty with costs and attorney's fees; the penalty is a lien | Collection follows the owners |
| (10)-(13) | Injunctions in Leon County, law-enforcement assistance, Chapter 120 hearing rights, rulemaking | The 21-day petition deadline |
| (14) | The Department must notify DBPR of any licensed contractor served a stop-work order or penalty | The license case |
The three numbers on the worksheet
- Two times premium. Subsection (7)(d)1 sets the penalty at 2 times the premium the employer would have paid, applying the approved manual rates to the uninsured payroll for the lookback period, or $1,000, whichever is greater. See the penalty audit page.
- 1.5 times the state average weekly wage. Subsection (7)(e) is the imputation rule: with no records, every identified person is assigned that payroll for every week. Rule 69L-6.028 adds the 20-business-day window to recalculate after the first assessment.
- 21 days. Appears three times: to produce records after the written request, to petition under Chapter 120, and to pay or sign the agreement before the order is reinstated. See the deadlines.
From the investigator's side
Subsection (7)(a) says the Department 'shall' issue the order. The investigator has no discretion once the finding is made. The discretion is in what the finding is, which is why what the crew says in the first ten minutes matters more than anything the owner says later.
How it is applied
The investigator inspects under (3), finds non-coverage under (2) or on the face of the records, issues the order under (7)(a), serves the records request, and calculates under (7)(d) or imputes under (7)(e). The employer's choices are to produce records or not, to petition within 21 days or not, and to take a conditional release or stay closed. Each of those is covered on the stop-work order pages, and the free calculator runs both penalty methods.
Served under section 440.107? The consultation is free, any hour.
(850) 766-6825Call or text (850) 766-6825Read the official text of s. 440.107, Fla. Stat. This page explains the statute; it does not reproduce it. Quote the statute.
Questions
Does 440.107 apply if I have a policy?+
Yes. Subsection (2) deems materially understated payroll, misclassified workers, or concealed experience-rating information to be a failure to secure coverage, so an insured employer can be served for the uncovered portion.
How long does a stop-work order stay on the Department's website?+
Subsection (7)(a) requires the Department to publish stop-work order information for at least five years.
Can I reopen the business under a new name?+
Subsection (7)(b) makes a successor entity with the same owners, officers or family members liable for the penalty, and section 440.05(14) blocks the new company's exemptions while the penalty is unpaid.