(1) A prehearing conference may be held to:

(a) determine the issues that must be decided by the appeals referee;

(b) exchange copies of all proposed exhibits and names, addresses, and telephone numbers of all proposed witnesses;

(c) identify possible remedies;

(d) discuss hearing procedures;

(e) hear oral argument on any motions; and

(f) perform any other duties that may facilitate the disposition of the case.

(2) All parties, including the department, are notified of the prehearing conference at least 20 days before the conference is scheduled.

(3) A prehearing order supersedes all other prior pleadings in the matter.

(4) If a party fails to participate in the prehearing conference, or fails to comply with a prehearing order, the appeals referee may impose sanctions upon that party including but not limited to:

(a) dismissal of the case;

(b) default judgment for the opposing party;

(c) limitation of evidence or witnesses at the hearing.