Cease and Desist Order

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A cease and desist order is an order by an administrative agency that requires certain practices specified to stop. It is used in Labor and Employment Law, Security Law, Education Law, and a lot of other areas of law. Typically, an administrative judge has the discretion to decide over the issuance of the order. There are two different kinds of cease and desist orders: summary cease and desist orders and final cease and desist orders. A cease and desist order that is issued prior to a hearing or without judicial proceedings is called a summary cease and desist order. The violator must request a hearing within a certain amount of time, otherwise, the order becomes final.

Penalty and Enforcement:

●      Under California Corporations Code, if a person does not comply with an order, the commissioner may petition the superior court or any court of competent jurisdiction to enforce the order. The court may not require the commissioner to post a bond in an action or proceeding under this section. If the court finds, after service and opportunity for hearing, that the person was not in compliance with the order, the court may adjudge the person in civil contempt of the order.

●      Under Florida Security for Public Deposits Act, any qualified public depository or other bank, savings association, or financial institution or custodian that violates a cease and desist order or corrective order of the Chief Financial Officer is subject to an administrative penalty not exceeding $1,000 for each violation of the order. Furthermore, the violation of any order to cease and desist is a misdemeanor of the second degree, punishable as provided by statute.

[Last updated in May of 2020 by the Wex Definitions Team]