These penalties are paid to the Uninsured Employers Benefit Trust Fund and are set aside for employees who are injured and cannot receive compensation from their employers since they are uninsured. The director of Industrial Relations must serve the civil penalty order at the same time that they serve the stop order and will be set at an amount depending on their specific situation.
Source: http://the-workers-compensation-attorney.com/civil-penalties-employers-workers-compensation-insurance
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