Massachusetts law requires employers to provide or obtain workers’ compensation insurance. If they fail to do so, they may face significant penalties, including debarment or the cessation of all business operations. Recently, a Massachusetts court discussed the basis for debarment in a matter in which an employer argued that the Commonwealth lacked justification for imposing the penalty. If you were hurt at work and have questions about your rights with regard to workers’ compensation benefits, it is smart to talk to a Massachusetts workers’ compensation attorney.
Case Background
It is reported that a Department of Industrial Accidents investigator was working in the area of the employer’s facility and decided to visit the business. Upon doing so, it discovered that the employer’s workers’ compensation policy was canceled. As such, the investigator issued a stop work order. The employer, who stated he was unaware the policy had been canceled, had coverage reinstated the following day.
Allegedly, the Department of Industrial Accidents nonetheless stated that debarment was nondiscretionary and automatic under the Massachusetts Workers’ Compensation Act. The employer appealed the stop work order, but the court affirmed the Department’s decision. The employer then appealed. Continue reading →