The Feb. 20 blaze killed 100 people, including four club employees, and injured nearly 200 others.
Workers' Compensation Court Judge Bruce Morin said his court didn't have the authority to stay the penalty, and only the state Supreme Court could take such action. The club owners planned to ask the Supreme Court to step in, according to AP.
The fine is the maximum allowed under state law - $1.07 million, or $1,000 for each day the owners failed to carry workers' compensation insurance from March 2000, when they bought the club, until it was destroyed.