Who Is Exempt from Workers’ Compensation in Florida?

If you own a business in Florida, it is important to understand the rules about workers’ compensation insurance. Many employers are required to carry this insurance. However, some businesses and individuals qualify for a  workers comp exemption in Florida under state law.

In this guide, we will explain who is exempt from workers’ compensation in Florida, how exemptions work, and what you should consider before deciding not to carry coverage.

What Is Workers’ Compensation?

Workers’ compensation is insurance that helps employees if they are hurt or become sick because of their job. It can help pay for:

• Medical bills
  
  
• Hospital visits
  
  
• Physical therapy
  
  
• A portion of lost wages
  
  
• Disability benefits
  
  

In most cases, Florida law requires employers to carry workers’ comp insurance. But there are some exceptions.

When Is Workers’ Compensation Required in Florida?

Before we talk about exemptions, it helps to understand who must carry coverage.

In Florida:

• Construction companies must carry workers’ comp if they have one or more employees.
  
  
• Non-construction businesses must carry workers’ comp if they have four or more employees.
  
  
• Agricultural businesses must carry workers’ comp if they have six or more regular employees or 12 or more seasonal workers working more than 30 days in a season.
  
  

If your business meets these requirements, you likely need coverage unless you qualify for a Florida workers comp exemption.

Who Is Exempt from Workers’ Compensation in Florida?

Now let’s answer the main question: Who qualifies for a workers comp exemption Florida?

There are two main types of exemptions:

1. Automatic exemptions based on the size of the business
   
   
2. Personal exemptions for certain business owners or officers
   
   

Let’s break them down.

1. Small Businesses With Fewer Employees

Some small businesses are automatically exempt from carrying workers’ compensation insurance.

Construction Industry

If you are in construction and you have no employees (you are the only worker), you may not be required to carry workers’ comp.

Non-Construction Businesses

If your business has three or fewer employees, you may not be required to carry workers’ compensation insurance.

Agricultural Businesses

Agricultural businesses may be exempt if they have:

• Five or fewer regular employees, or
  
  
• Eleven or fewer seasonal workers
  
  

If your business stays below these limits, you may qualify for an automatic exemption.

However, once you hire more employees and pass the required number, you must obtain workers’ compensation coverage right away.

2. Personal Exemptions for Business Owners and Officers

In some cases, individuals can apply for a florida workers comp exemption even if the business must carry coverage for other employees.

Who Can Apply?

• Corporate officers
  
  
• Members of a Limited Liability Company (LLC)
  
  

These individuals can file a “Notice of Election to be Exempt” with the Florida Division of Workers’ Compensation.

If approved, they receive a certificate showing they are exempt.

What Does a Personal Exemption Mean?

When someone is exempt:

• They are not counted as an employee for workers’ comp purposes.
  
  
• They are not covered by workers’ compensation insurance.
  
  
• If they are injured at work, they cannot collect workers’ comp benefits.
  
  

This can lower insurance costs because fewer people are covered. But it also means the exempt person takes on more risk.

How Long Does a Florida Workers’ Comp Exemption Last?

A personal exemption typically lasts for two years. After that, it must be renewed.

If the exemption expires and is not renewed, the person may automatically be counted as an employee again. This could increase the number of employees and require coverage.

Business owners should keep track of renewal dates to avoid penalties.

Are There Limits on Exemptions?

Yes. Florida law places limits on how many corporate officers or LLC members can be exempt, especially in the construction industry.

For example:

• Construction companies are allowed only a limited number of corporate officer exemptions.
  
  
• Not every worker can simply claim exemption status.
  
  

If you try to claim an exemption improperly, your business could face fines or a stop-work order.

Risks of Choosing a Workers Comp Exemption Florida

Some business owners choose a workers comp exemption Florida to save money on insurance premiums. While this may reduce costs, it also increases risk.

Here are some things to consider:

1. No Medical Coverage

If you are exempt and get hurt on the job, your medical bills will not be covered by workers’ compensation.

2. No Lost Wage Benefits

Workers’ compensation helps injured employees replace part of their lost income. Exempt individuals do not receive this benefit.

3. Possible Lawsuits

Without workers’ compensation protection, there may be a higher risk of lawsuits if someone is injured.

Workers’ comp insurance often protects businesses from personal injury lawsuits. Without it, your business could face serious financial problems.

Example Scenario

Let’s look at a simple example.

Maria owns a small marketing company in Florida with three employees. Since her business is not in construction and has fewer than four employees, she does not have to carry workers’ compensation insurance.

However, if Maria hires a fourth employee, her business will now be required to carry workers’ comp.

In another example, John owns a construction company and works alone. Because he has no employees, he may not need workers’ compensation insurance. But if he hires even one worker, coverage becomes required.

These examples show how quickly requirements can change.

Why Understanding Florida Workers Comp Exemption Is Important

Failing to carry required workers’ compensation insurance can lead to:

• Heavy fines
  
  
• Stop-work orders
  
  
• Back payments for insurance
  
  
• Legal trouble
  
  

On the other hand, claiming an exemption when you don’t qualify can also cause serious problems.

That’s why it’s important to fully understand the rules before making a decision.

Final Thoughts

Understanding workers comp exemption Florida laws is essential for every Florida business owner. Whether you qualify for an exemption depends on your industry, the number of employees you have, and your role in the company.

Before choosing a Florida workers comp exemption, carefully review the risks and legal requirements to protect both your business and your financial future.

If you have questions about workers’ compensation requirements or exemptions in Florida, contact RIE Law today for trusted legal guidance.

Frequently Asked Questions (FAQs)