Current through 2024 Public Law 457
Section 28-53-9 - Penalties, taxes and assessments against non-complying employers(a) Where it is determined that an employer has failed to maintain a policy of workers' compensation insurance as required by § 28-36-1 et seq. and that while the employer was uninsured in violation of the statute, an employee suffered a compensable injury, the uninsured protection fund shall commence the payment of weekly payment to the employee as set forth herein, subject to fund availability. On behalf of the fund, the director shall acquire a lien against the goods and chattels of the uninsured employer to the extent of any payments made by it to the injured employee. The lien(s) shall arise and attach as of the date on which the fund makes payment to the injured employee without further action by the fund or the court. The lien shall have priority over all subsequently perfected liens and security interests.(b) Prior to the lien being filed with the office of the secretary of state, the employer shall be notified by certified mail, return receipt requested, that a lien will be filed against all goods situated in the state if the outstanding tax is not paid within seven (7) business days of receipt of the notice.(c) The liens shall become perfected at the time when a notice of lien is filed pursuant to the filing provisions of § 6A-9-501. The notice of lien shall include the following: (1) The name of the debtor, as governed by § 6A-9-503;(2) The name of the director of the department of labor and training as the party claiming the lien; and(3) A description of the property so encumbered as governed by § 6A-9-504.(d) The director shall be entitled to effectively file the lien and to amend the lien quarterly as additional payments are made or terminate it as necessary.(e) No filing fee shall be charged for the filing of a lien authorized by this section.(f) Where the employer is a corporation, the president, vice president, secretary, and treasurer of the corporation shall be severally personally liable, jointly with a corporation for any payments made to the injured employee by the fund, and the fund shall acquire a lien against the goods and chattels of the president, vice president, secretary, and treasurer to the extent of any payments so made.(g) Where the employer is a limited-liability company, the managers and managing members shall be severally personally liable, jointly with the limited-liability company for any payments made to the injured employee by the fund and the fund shall acquire a lien against the goods and chattels of the manager and managing member to the extent of any payments so made.(h) The liens and excise taxes levied against the noncomplying party pursuant to this section shall be in addition to any and all other fines, penalties and assessments, to which the party would otherwise be liable in particular the penalties mandated by § 28-36-15.Amended by 2018 Pub. Laws, ch. 98,§ 5, eff. 6/28/2018.Amended by 2018 Pub. Laws, ch. 86,§ 5, eff. 6/28/2018.