(1) Following the expiration of the time for an employer to respond to a claim, the department will make a written determination of the wages and penalty owed, if any.

(2) The written determination will incorporate by reference any determination of the department's independent contractor central unit regarding the employment status of the wage claimant.

(3) A copy of the written determination will be mailed to each party and attorneys of record at their last known address.

(4) Failure of the employer to timely respond to a claim will result in the entry of a determination adverse to the employer.