§ 32–1331.07. Penalties.

(a) Any employer who violates or fails to comply with the requirements of this subchapter shall be subject to a civil penalty of not less than $1,000, and not more than $5,000, for each violation. Each employee who is not properly classified in violation of this subchapter shall be considered a separate violation.

(b) An employer who violates § 32-1331.10 shall be subject to a civil penalty of not less than $5,000, and not more than $10,000, for each such violation.

(c) In addition to the penalties provided in subsections (a) and (b) of this section, an employer may be subject to a stop work order, and may be ordered to make restitution, pay any interest due, and otherwise comply with all applicable laws and regulations.

(d) Within 30 days of the final order, an employer found in violation of this subchapter shall be required to:

(1) Pay restitution to or on behalf of any individual not properly classified; and

(2) Otherwise come into compliance with all applicable labor laws, including those related to income tax withholding, unemployment insurance, wage and hour laws, and workers’ compensation.

(e) Notwithstanding subsections (a) and (b) of this section, an employer who has been found to have violated this subchapter more than twice in a 2-year period:

(1) Shall have the choice of being assessed an administrative penalty of $20,000 for each employee that was not properly classified, or be debarred for 5 years; and

(2) If an employer is debarred pursuant to paragraph (1) of this subsection, the employer shall be subject to a civil penalty of not less than $5,000, and not more than $10,000, for each employee that was not properly classified, and may be ordered to make restitution, pay any interest due, and otherwise comply with all applicable laws and regulations.

(f) Any penalty issued under this section against an employer shall be in effect against any successor corporation or business entity that:

(1) Has one or more of the same principals or officers as the employer against whom the penalty was assessed; and

(2) Is engaged in the same or equivalent trade or activity.