65-04-27.2. Cease and desist order - Civil penalty

65-04-27.2. Cease and desist order - Civil penalty 1. If it appears to the organization an employer is without workers compensation coverage, is in an uninsured status in violation of this title, or knowingly conducts business with an uninsured employer, the director by registered mail may issue to the employer an order to cease and desist and a notice of opportunity for hearing. Within forty-five days from the date of service of the order, a party to the order may make a written request for a hearing. If a hearing is not requested, the order is final and may not be appealed. If a hearing is requested, the hearing must be conducted in accordance with chapter 28-32 to the extent that chapter does not conflict with this section and the order remains in effect until the hearing officer renders a decision. If an employer fails to appear at a hearing requested under this section, that employer defaults and the allegations contained in the cease and desist order are deemed true. 2. In addition to the penalties in section 65-04-33, a person that employs an individual in violation of a cease and desist order issued under this section is subject to a penalty of ten thousand dollars and to a penalty of one hundred dollars per day for each day the violation continues. The organization may reduce the penalties under this section. 3. A general contractor or a subcontractor that knowingly uses the services of a subcontractor precluded from operating under a cease and desist order, or an employer conducting business with an uninsured employer precluded from operating under a cease and desist order, is subject to a penalty of five thousand dollars and one hundred dollars per day for each day the violation occurs. The organization shall provide notice to the general contractor or subcontractor by regular mail before assessing penalties under this section. The organization may reduce the penalties under this section.