Division of Workers' Compensation

Key Coverage And Exemption Eligibility Requirements

• What are some of the Key Coverage Requirements?
• What Key Information should an Out-of-State Employer know?
• Where to Find Workers Compensation Coverage Information?
• What are some of the Key Exemption Eligibility Requirements?
• How to Apply for and obtain an Exemption?
• What are some of the Key Division Enforcement Provisions?

Key Coverage Requirements

• An employer engaged in the construction industry that employs one or more part or full time employees or an employer in the non-construction industry that employs 4 or more part or full time employees must have Florida workers’ compensation insurance. Employee includes: Corporate officers, and for construction industry employers, limited liability company members 440.02(9), sole proprietors, and partners. Corporate officers, which for construction industry employers, include s a member of a limited liability company are eligible to elect to be exempt from the provisions of Chapter 440.
• An employer in the construction industry shall require any sub-contractor who sub-contracts work from an employer to provide evidence of Florida workers’ compensation insurance. If the sub-contractor has a valid exemption, then the sub-contractor shall also provide a copy of his or her certificate of exemption to the employer 440.10 (c).
• A change in job duties performed by employees or an increase in the amount of payroll of a business must be reported to the insurance company.
• If an employer has secured workers’ compensation coverage for his or her employees by entering into an employee leasing arrangement, the employer must specifically identify coverage for each and every employee. The employer must notify the employee leasing company of the names of all the covered employees and any additional employees that are working on a jobsite that may have been excluded from the employee leasing arrangement. Any change in job duties performed by the employees must also be reported to the employee leasing company.

Out-of-State Contractors Requirements

• An out-of-state employer engaged in the construction industry must immediately notify his or her insurance company and, or insurance agent that it has employees that are engaging in work in Florida..
• An out-of-state construction industry employer, who has employees engaged in work in Florida, must either obtain a Florida workers’ compensation insurance policy or an endorsement must be added to the out-of-state contractor’s policy that lists Florida in section 3.A. of the policy.
• A Florida construction employer (contractor) engaged in work in this state who contracts with out-of-state employer (sub-contractors), must require proof of a Florida workers’ compensation policy or an endorsement to the out-of-state employer’s policy that lists Florida in section 3.A. of the policy. If the out-of-state employer does not provide proof of a Florida workers’ compensation policy or of an endorsement to the policy, or does not have a valid workers’ compensation exemption; the Florida employer (contractor) must contact his or her workers’ compensation insurance carrier to update his or her policy to include such sub-contractor and any persons that are employed by such sub-contractor 440.10.2 (g).

Where to Find Workers Compensation Insurance Coverage?

Contact an insurance agent. You can also contact the following insurance agent associations:

• Florida Association of Insurance Agents at www.faia.com
• Professional Insurance Agents of Florida at www.piafl.org/wc-info.pdf or call (850) 893-8245
• Latin American Association of Insurance Agents at 305-477-1442

If you cannot obtain coverage through the standard workers’ compensation market, you may contact the Florida Workers’ Compensation Joint Underwriting Association (FWCJUA) at 941-378-7400 or visit their website at www.fwcjua.com. The workers’ compensation rates in the FWCJUA will be higher than the rates in the standard market.

You may also consider entering into an employee leasing arrangement with a professional employer organization that has secured workers’ compensation coverage on behalf of its clients.

Key Exemption Eligibility Information

An individual, as an officer of a corporation, who elects to be exempt may not recover workers’ compensation benefits. Eligibility requirements and documentation which must be submitted with the exemption application are detailed in 440.05 and outlined below.

Non-construction industry corporate officer:

• The corporation must be registered with the Florida Department of State, Division of Corporations- 440.05 (11)**.
• The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations- 440.02 (15) (b) (2).
• There is no limit to the number of corporate officers eligible for exemption
• There is no application fee

Construction industry corporate officer, including a member of a limited liability company (LLC) 440.02 (9)

• The corporation must be registered with the Florida Department of State, Division of Corporations - 440.05 (11)**.
• The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations - 440.05 (11).
• The applicant must own at least 10 percent of the stock of the corporation as evidenced by a stock certificate or in the case of an LLC a notarized statement attesting to the minimum 10 percent ownership - 440.02 (9).
• The applicant must list all certified or registered licenses issued to you pursuant to Chapter 489, Florida Statutes
• A $50.00 application fee is required - 440.05 (8) (a).
• No more than three officers of a corporation (including LLC) or of any group of affiliated corporations (including LLCs) may elect to be exempt 440.02 (15) (b) (2).

**Out-of-state contractors that are corporations or limited liability companies can qualify as foreign corporations or foreign limited liability companies by filing specific forms and documentation with the Florida Division of Corporations. For more information regarding the foreign qualification requirements, call (850) 245-6051. The forms can be accessed at www.sunbiz.org.

How to Obtain a Construction Industry Exemption Application

• The Notice of Election to be Exempt (for DWC 250) can be obtained from our website at http://www.myfloridacfo.com/WC/forms.html#6. Click on form “DWC 250”. Click on “DWC 250 Instructions” to view the instructions for completing.
• For additional information about workers’ compensation exemptions, please call customer service at 1-850-413-1601.

Division Enforcement Provisions (Section 440.107, F.S.)

• The Florida Division of Workers’ Compensation is responsible for enforcing employer compliance with the coverage requirements of the workers’ compensation law. Compliance investigators have the authority to conduct on-site inspections of job sites to ensure employer compliance. Investigators can also request an employer’s business records. An employer must produce the required business records within five business days of the division’s written request for records. If the employer fails to respond to the request within five business days, the division will issue a stop work order upon the employer requiring the employer to cease all business operations in the state.
• A stop work order will also be issued to any employer who is required to secure Florida workers’ compensation coverage but fails to do so. A stop work order will also be issued in cases where an employer may have a workers’ compensation policy but understates or conceals payroll, misrepresents or conceals employee duties or fails to utilize Florida’s class codes and workers’ compensation rates.
• In order for the division to release a stop work order, an employer must provide evidence that it has come into compliance and has paid the monetary penalty, or entered into a payment agreement with the division.