Section 8 AAC 45.176 - Failure to provide security: assessment of civil penalties(a) If the board finds an employer to have failed to provide security as required by AS 23.30.075, the employer is subject to a civil penalty under AS 23.30.080(f), determined as follows:(1) if an employer has an inadvertent lapse in coverage, the civil penalty assessed under AS 23.30.080(f) for the employer's violation of AS 23.30.075 may be no more than the prorated premium the employer would have paid had the employer been in compliance with AS 23.30.075; the division shall consider a lapse in coverage of not more than 30 days to be inadvertent if the employer has changed carriers, ownership of the employer has changed, the form of business entity of the employer has change, the individual responsible for obtaining workers' compensation coverage for the employer has changed, or the board determines an unusual extenuating circumstance to qualify as an inadvertent lapse;(2) if an employer has not previously violated AS 23.30.075, and is found not to have aggravating factors, and agrees to a stipulation of facts and executes a confession of judgment without action, without a board hearing, the employer will be assessed a civil penalty of two times the premium the employer would have paid had the employer complied with AS 23.30.075;(3) if an employer has not previously violated AS 23.30.075, and is found to have no more than three aggravating factors, the employer will be assessed a civil penalty of no less than $10 and no more than $50 per uninsured employee workday; however, the civil penalty may not be less than two times the premium the employer would have paid had the employer complied with AS 23.30.075; without a board hearing, if an employer agrees to a stipulation of facts and executes a confession of judgment without action, the employer will be given a 25 percent discount of the assessed civil penalty; however, the discounted amount may not be less than any civil penalty that would be assessed under (2) of this subsection;(4) if an employer is found to have no more than six aggravating factors, the employer will be assessed a civil penalty of no less than $51 and no more than $499 per uninsured employee workday; however, the civil penalty may not be less than two times the premium the employer would have paid had the employer complied with AS 23.30.075; without a board hearing, if an employer agrees to a stipulation of facts and executes a confession of judgment without action, the employer will be given a 25 percent discount of the assessed civil penalty; however, the discounted amount may not be less than any civil penalty that would be assessed under (3) of this subsection;(5) if an employer is found to have no fewer than seven and no more than 10 aggravating factors, the employer will be assessed a civil penalty of no less than $500 and no more than $999 per uninsured employee workday; however, the civil penalty may not be less than four times the premium the employer would have paid had the employer complied with AS 23.30.075; without a board hearing, if an employer agrees to a stipulation of facts and executes a confession of judgment without action, the employer will be given a 25 percent discount of the assessed civil penalty; however, the discounted amount may not be less than any civil penalty that would be assessed under (4) of this subsection;(6) if an employer is found to have more than 10 aggravating factors, the employer will be assessed a civil penalty of $1,000 per uninsured employee workday.(b) A civil penalty assessed under (a) of this section may not exceed the maximum civil penalty allowed under AS 23.30.080(f).(c) An employer receiving government funding of any form to obtain workers' compensation coverage under AS 23.30.075 that fails to provide that coverage may be assessed the maximum civil penalty under AS 23.30.080(f).(d) For the purposes of this section, "aggravating factors" include(1) failure to obtain workers' compensation insurance within 10 days after the division's notification of a lack of workers' compensation insurance;(2) failure to maintain workers' compensation insurance after previous notification by the division of a lack of coverage;(3) a violation of AS 23.30.075 that exceeds 180 calendar days;(4) previous violations of AS 23.30.075;(5) issuance of a stop order by the board under AS 23.30.080(d), or the director under AS 23.30.080(e);(6) violation of a stop order issued by the board under AS 23.30.080(d), or the director under AS 23.30.080(e);(7) failure to comply with the division's initial discovery demand within 30 days after the demand;(8) failure to pay a penalty previously assessed by the board for violations of AS 23.30.075;(9) failure to provide compensation or benefits payable under the Act to an uninsured injured employee;(10) a history of injuries or deaths sustained by one or more employees while employer was in violation of AS 23.30.075;(11) a history of injuries or deaths while the employer was insured under AS 23.30.075;(12) failure to appear at a hearing before the board after receiving proper notice under AS 23.30.110;(13) cancellation of a workers' compensation insurance policy due to the employer's failure to comply with the carrier's requests or procedures;(14) lapses in business practice that would be used by a reasonably diligent business person, including(A) ignoring certified mail;(B) failure to properly supervise employees; and(C) failure to gain a familiarity with laws affecting the use of employee labor;(15) receipt of government funding of any form to obtain workers' compensation coverage under AS 23.30.075, and failure to provide that coverage.(e) In this section,(1) "premium" means the current amount charged to the employer by a carrier for coverage under AS 23.30.075;(2) "uninsured employee workday" means the total hours of employee labor utilized by the employer while in violation of AS 23.30.075 divided by eight.Eff. 2/28/2010, Register 193Authority:AS 23.30.005
AS 23.30.080