39-2-1606. Civil penalties for violation. (1) The department may assess civil penalties against an employer violating the provisions of this part, or when appropriate, inform the proper government entity to suspend a license as follows:

(a) for a first violation, the penalty may not be more than $500 for each individual employed, hired, or recruited in violation of 39-2-1603;

(b) for a second violation, the penalty may not be more than $1,000 for each individual employed, hired, or recruited in violation of 39-2-1603; and

(c) for a third or subsequent violation, the appropriate government entity shall immediately on notification suspend the violator's license or licenses for not less than 30 days or more than 6 months, and a fine must be assessed that may not be more than $2,500 for each individual employed, hired, or recruited in violation of 39-2-1603.

(2) A hearing must be conducted according to contested case procedures under Title 2, chapter 4, part 6, except that service need not be made as prescribed for civil actions in the district court and the hearings officer is not bound by statutory or common-law rules of evidence.

(3) A penalty collected under this section must be deposited in the lawful employment enforcement fund established in 39-2-1608.