08/27/2008
Workers' Compensation Exemptions
Florida law requires non-construction employers with four or more part-time or full-time employees, and construction industry employers with one or more part-time or full-time employees, to provide workers' compensation insurance.
The decision to not cover an employee is critical to small business owners allowed that option. While it can provide significant cost savings, it also exposes the employer to lawsuits from injured employees who are generally prohibited from suing an employer where the employer provides workers compensation coverage.
NFIB has consistently advocated for the availability of workers' compensation exemptions for small business owners. Exemptions are available to corporate officers, with a limit of three officers for construction industry corporations. Exemptions require an application, documentation, and sometimes, a fee. Each officer must submit an individual application.
Exercising a workers' compensation exemption is an important option for small business owners, but may be risky considering any officer choosing an exemption is not eligible for workers' compensation benefits, and may expose the corporation to a lawsuit.
Applicants must file the Notice of Election to be Exempt (Form DWC-250) along with any required documentation. Eligibility requirements and documentation which must be submitted with the exemption application are outlined as follows:
Non-Construction Industry Corporate Officer
- The corporation must be registered with the Florida Department of State, Division of Corporations.
- The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations.
- There is no application fee.
Construction Industry Corporate Officer
- The corporation must be registered with the Florida Department of State, Division of Corporations.
- The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations.
- 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.
- The applicant must list all certified or registered licenses issued pursuant to Chapter 489, Florida Statutes.
- A $50 application fee is required.
Download the Notice of Election to be Exempt (Form DWC-250).
For additional information regarding Workers' Compensation Insurance, contact the Florida Division of Workers' Compensation at 850-413-1601.
This is intended of a broad overview of the Florida Workers' Compensation Exemptions, and does not constitute legal advice. Business owners should consult with a licensed insurance agent regarding workers' compensation coverage and seek the advice of an attorney regarding their liability exposure as it relates to worker's compensation exemptions.
