State of Washington May Stop Contractors' Work if no Workers Compensation Coverage

Effective July 26, 2009, the Washington State Department of Labor and Industries may issue a stop work order for any contractor without workers compensation (industrial insurance) coverage.

Substitute Senate Bill 5613 authorizes a $1,000 a day penalty for failure to comply and outlines options for how a contractor may respond to a stop work order. The legislation adds a new section to chapter 51.48 RCW.