§ 11-9-406. Failure to secure payment of compensation — Penalty

(a)

1. (1) Any employer required to secure the payment of compensation under this chapter who fails to secure compensation shall be subject to a fine of up to ten thousand dollars ($10,000) as determined by the Workers’ Compensation Commission payable to the Death and Permanent Total Disability Trust Fund or be guilty of a Class D felony.

2. (2) This subsection shall not affect any other liability of the employer under this chapter.

(b)

1. (1) Whenever the commission has reason to believe that any employer required to secure the payment of compensation under this chapter has failed to do so, the commission shall serve upon the employer a proposed order declaring the employer to be in violation of this chapter and containing the amount, if any, of the civil penalty to be assessed against the employer pursuant to subdivision (b)(5) of this section.

2. (2)

   1. (A) An employer may contest a proposed order of the commission issued pursuant to subdivision (b)(1) of this section by filing with the commission, within twenty (20) days of receipt of the proposed order, a written request for a hearing.

   2. (B) Such a request for a hearing need not be in any particular form but shall specify the grounds upon which the person contests the proposed order, the proposed assessment, or both.

   3. (C) If a written request for hearing is not filed with the commission within this time, the proposed order, the proposed penalty, or both, shall be a final order of the commission and shall not be subject to further review by any court.

   4. (D) A proposed order by the commission pursuant to this section is prima facie correct, and the burden is upon the employer to prove that the proposed order is incorrect.

3. (3)

   1. (A) If the employer alleges that a carrier has contracted to provide it workers’ compensation insurance coverage for the period in question, the employer shall include the allegation in its request for hearing and shall name the carrier.

   2. (B) The commission shall promptly notify the carrier of the employer’s allegation and of the date of hearing.

   3. (C) The carrier shall promptly, and no later than five (5) days prior to the hearing, respond in writing to the employer’s allegation by providing evidence of coverage for the period in question or by affirmatively denying the employer’s allegation.

4. (4) Hearings conducted under this section shall proceed as provided in §§ 11-9-704 — 11-9-711.

5. (5) The commission may assess a fine against an employer who fails to secure the payment of compensation in an amount up to one thousand dollars ($1,000) per day of violation payable to the fund.

6. (6) If an employer fails to secure the payment of compensation or pay any civil penalty assessed against the employer after an order issued pursuant to this section has become final by operation of law or upon appeal, the commission may petition the Pulaski County Circuit Court or of the county where the employer’s principal place of business is located for an order enjoining the employer from engaging in further employment until such time as the employer secures the payment of compensation or makes full payment of all civil penalties.