With a fine already assessed (by the state "gov"ernor, I assume), it is time to contact an attorney. Contact your local county bar association, for starters, if you do not know someone. You have more to worry about than just state workers comp, e.g., FICA, Unemployment insurance, and state and federal withholding...
Do some research on private contractor vs. employee. Check IRS Pub 1779 and other references. Someone in your organization needs to fully understand the distinction, especially if you intend to operate at the edges.
What sort of entity have you formed to produce the doc? I see that you have fiscal sponsorship from Fractured Atlas.