10.1Purpose
A.The purpose of these rules is to provide procedural guidelines for enforcement of employer obligations to secure workers' compensation insurance, including with regard to the suspension of business operations of employers operating without the required workers' compensation insurance under the provisions of R.I. Gen. Laws § 28-36-15(e)(1), as well as to define the workers' compensation insurance requirements for out of state employers performing work in Rhode Island.
10.2Authority
A.These rules and regulations are promulgated pursuant to R.I. Gen. Laws § 28-29-26(a).
10.3Definitions
A.“Director” means the Director of the Department of Labor and Training and his or her designee.
B.“Department” means the Department of Labor and Training
10.4Stop Work Order and Suspend Business Operation Procedures Pursuant to R.I. Gen. Laws § 28-36-15(i)(1)
A.Employers working in Rhode Island are required to have Workers’ Compensation Insurance coverage. Required coverage is determined by the Director of the Department of Labor and Training (hereinafter “Director”) in accordance with the provisions of R.I. Gen. Laws Chapters 28-29 through 38 and 27-7.1 et seq. Employers working without the required coverage will be subject to the following procedures:
1.The Director shall issue and serve a Stop Work Order upon the Employer mandating that the Employer suspend Rhode Island business operations immediately.
2.Following the issuance of the Director's Stop Work Order, the Employer has the right to appeal the Director’s Stop Work Order, by filing an Appeal with the Workers’ Compensation Court pursuant to R.I. Gen. Laws § 28-36-15(i)(1) and the Rhode Island Workers’ Compensation Court Rules of Practice. The Employer shall notify the Director of its Appeal, within forty-eight (48) hours, by serving a copy of said Appeal on the Director in accordance with the Rhode Island Workers’ Compensation Court Rules of Practice.
3.The Stop Work Order shall be personally served by the Department on the Employer, the Employer's representative, or its registered agent, or may be left at the Employer’s Rhode Island worksite, or place of business.
4.Once the Director receives satisfactory evidence that the appropriate coverage has been obtained the Order shall be immediately rescinded.
10.5Enforcement of Stop Work Order
A.If the Employer continues to operate its business in Rhode Island, after the Director has issued a Stop Work Order, the Director shall immediately file a Petition to Enforce with the Workers’ Compensation Court, directing the employer to comply with the Director's Stop Work Order and request an emergency hearing to enforce the Department’s Stop Work Order pursuant to R.I. Gen. Laws § 28-36-15(i)(2).
B.The Director shall effect service of the petition and notice on the employer within forty-eight (48) hours by delivering a copy of the petition and notice to a person individually or, if a private corporation, by delivering a copy of the petition and notice to an officer, or a managing or general agent, or by delivering a copy of the petition and notice at an office of the corporation to a person employed by said corporation, or by delivering a copy of the petition and notice to an agent authorized by appointment or by law to receive service of process. If the employer is a public corporation, body, or authority, service shall be made by delivering a copy of the petition and notice to any officer, director, or manager thereof. The Director shall certify to the court that such service has been affected prior to the time of the hearing.
10.6Temporary Exposure/Out of State Coverage
A.Out of state Employers working in Rhode Island for temporary periods of time are required to establish to the satisfaction of the director that they have workers’ compensation insurance coverage that provides coverage for claims filed in Rhode Island. Such coverage insurance carrier must respond to Rhode Island workers’ compensation claims and petitions filed in the Rhode Island Workers’ Compensation Court and must provide Rhode Island benefits for compensable claims filed in this state.
B.For the purpose of these regulations, “temporary periods of time” shall mean a period not to exceed one hundred eighty (180) days in the aggregate to be applied over a period of twelve (12) months.
C.Out of state Employers working in Rhode Island for durations in excess of one hundred eighty (180) days over a period of twelve (12) months shall be required to obtain Rhode Island workers’ compensation insurance coverage with Rhode Island named in Part 3A of the policy. Employers working for shorter periods of time must have a workers’ compensation insurance policy that covers Rhode Island claims.
D.Out of state Employers working in Rhode Island who hire employees in Rhode Island shall be required to obtain Rhode Island workers’ compensation insurance coverage with Rhode Island named in Part 3A of the policy.
