(1) Pursuant to MGL c. 152, § 25C, the Division of Industrial Accidents (DIA) Office of Investigations shall investigate those businesses, organizations or other entities that employ one or more persons, be it full or part-time, as defined by MGL c. 152, § 1 and determine if said business, organization or entity has obtained the proper workers' compensation insurance coverage. If the Office of Investigations determines that any business, organization or other entity has failed to obtain a workers' compensation policy for its employees then a Stop Work Order (SWO) shall be issued and appropriate fines and penalties shall be levied.

(2) Pursuant to MGL c. 152, § 1(4), the DIA shall grant exemptions from the provisions of the workers' compensation act (MGL c. 152) to certain corporate officers and directors who own at least 25% of the issued and outstanding shares of a corporation. Further, sole proprietors and partners in a legal partnership may elect to be an employee and obtain workers' compensation insurance coverage for themselves.