How General Contractors in Florida Can Keep Their Workers’ Compensation Exemption Intact

All general contractors in Florida are required to carry workers’ compensation insurance for their employees to cover liabilities in the event of on-the-job injuries. However, there are situations in which an exemption from this requirement may be possible. In this post, we’ll cover the requirements for obtaining this exemption and how to renew it each year.

Who is Eligible for Workers’ Compensation Insurance and Exemptions?

Florida general contractors are required to carry workers’ compensation insurance under Florida state law. This includes sole proprietors, partnerships, limited liability corporations (LLCs) and corporations.

Independent contractors and subcontractors cannot be excluded from workers’ compensation insurance, though they would have been from other benefits. All contractors must provide proof of coverage. For the purposes of workers’ compensation, every individual involved with a project must be considered either an employer or employee and carry the proper insurance.

Requirements for Renewing an Exemption from Workers’ Compensation Insurance

In order to be exempt, Florida general contractors must apply for a Certificate of Election to be Exempt from Florida’s Workers’ Compensation Law. Regardless of whether the applicant is employed by a corporation or limited liability corporation (LLC), the following conditions must be met to be considered for an exemption:

  • The LLC or corporation must be registered with the Florida Department of State, Division of Corporations, and listed as active.
  • The applicant must provide a state driver license number or Florida ID number.
  • The applicant must own at least 10 percent of the LLC or corporation.
  • No more than three officers of the LLC or corporation may apply for exemption. Anyone else will need to be covered by workers’ compensation insurance.
  • An application fee of $50 is required. This is a processing fee for an exemption in the construction industry. An insufficient amount will result in ineligibility for exemption.
  • The applicant in question cannot be associated with any active Stop Work Order (SWO), Order of Penalty Assessment (OPA), or Working in Violation (WIV). Any of these will result in ineligibility for exemption.

To renew an exemption:

  • The LLC or corporation must still be registered and listed as active with the Florida Department of State.
  • The applicant must provide a current state driver license number or Florida ID number.
  • The applicant must still retain a 10 percent ownership of the LLC or corporation.
  • There cannot be any active Stop Work Orders, Orders of Penalty Assessment, or Working in Violations associated with the applicant.
  • Information relating to the existing exemption, including identification numbers and expiration date, must be provided.

Get Some Help with Your Exemption Needs

Contractors Reporting Services in Tampa, Florida, can help you sort out your workers’ compensation exemption. We will work with your situation and help you submit all the necessary materials needed on time and in order. Get in contact with us today for high quality professional assistance, or leave a comment on this post with any queries or concerns you may have, and we’ll be sure to get back to you ASAP.