away" with all exemptions
except for a limit of up to three officers of a corporation or LLC who
own 10% more of the stock in that corporation or LLC (a sub-S
corporation is a corporation in Florida). This means THAT you have to
be a corporation or LLC to exempt yourself, even if you have just one
employee - yourself. If you or your company is a sole proprietorship or
partnership, YOU CAN'T exempt yourself or anyone from Worker's
Compensation in Florida.
effective July 1, 2002, do NOT allow
contractors or subcontractors to exempt themselves, or those working on
their behalf, if the project is a commercial project valued at $250,000
or more. The value is to be established by the local
building permit or Southern Building Code Conference
International/International Code Council (SBCCI/ICC) Building Code
What does this
mean to me as a contractor
or a subcontractor?
that implements it place several major requirements on
contractors and subcontractors in Florida.
and subcontractors who work on commercial projects valued at $250,000
or more must have workers’ compensation insurance in place for everyone
working on a contractor’s or subcontractor’s behalf at the construction
or renovation site. This includes sole proprietors, partners
and corporate officers, if they visit the job site.
and subcontractors who would normally treat certain workers as
“independent contractors” cannot treat them as such for the purposes of
workers’ compensation insurance coverage when working on a commercial
project valued at $250,000 or more. When working on these
projects, workers must be considered either employers or employees, and
must have the appropriate workers’ compensation coverage in place.
employers working on commercial projects valued at $250,000 or more
must maintain employee payroll and coverage records for those jobs and
must be able to produce these records upon request.
to maintain the appropriate records and/or insurance will render a
contractor or subcontractor in violation of the law and makes them
subject to penalties under the provisions of Section 440.107, F.S.
contractors on commercial construction or renovation sites are
responsible for ensuring that all subcontractors meet the mandatory
insurance requirements for crews working on their sites.
and Answers -
Florida Workers Compensation
What was the
Division’s notification process?
Senate Bill 108 was signed into law in May, 2002. At that time,
were nearly 150,000 exemption holders in Florida that would be affected
by the new law changes. Notice of the change was posted on the
Division of Workers' Compensation web site as well as on several
industry web sites prior to the effective date of July 1, 2002.
Although there was no statutory requirement that the Division provide
notification to exemption holders, letters were mailed to exemption
holders in batches of 8,000-10,000 per day beginning the last week in
June and continued through July 12, 2002.
Does the new
law apply to renovations to existing commercial buildings or
the value of the renovations to an existing commercial building project
exceeds $250,000, an exemption is not applicable; therefore workers’
compensation coverage must be obtained. If the value of the renovations
is less than $250,000, the exemption remains in effect. The
the exemption law do not apply to residential buildings, which are
defined as any building or structure intended for residential use
containing four or fewer dwelling units.
How will my
premium be determined for the work I do on commercial projects?
must retain verifiable payroll records that will differentiate your
activities on commercial projects over $250,000 and all other job
activities. In addition, the National Council on Compensation
Insurance (NCCI) and the Department of Insurance will develop premium
determination rules that insurers must follow.
Question: If I am
already working on a commercial project, is my exemption valid on that
one still or not?
law provides that an exemption does NOT apply on or after July 1, 2002
to a commercial building project valued at $250,000 or greater.
Therefore, your exemption is not valid and you must obtain workers’
compensation coverage where you work on such a project on or after July
1, 2002. Your exemption does STILL apply to work on commercial
building projects valued at less than $250,000 or residential projects
with four or fewer dwelling units.
for-profit activities involving the
carrying out of any building,
clearing, filling, excavation, or substantial involvement in the size
or use of any structure or the appearance of any land. When appropriate
to the context, “construction” refers to the act of construction or the
result of construction. However, “construction” shall not mean a
landowner’s act of construction or the result of construction upon his
or her own premises, provided such premises are not intended to be sold
Employee – any person engaged in
employment under any appointment or
contract of hire or apprenticeship, express or implied, oral or
written, whether lawfully or unlawfully employed, and includes, but is
not limited to, aliens and minors.
any building or structure intended for commercial or industrial use, or
any building or structure intended for multifamily use of more than
four dwelling units, as well as any accessory use structures
constructed in conjunction with the principle structure. The term
commercial building does not include the conversion of any existing
residential building to a commercial building.
Building – any building or structure intended for
residential use containing four or fewer dwelling units and any
structures intended as an accessory use to the residential structure.
Talk to an experienced staff member
and have them contact you
a quote or discussion about getting immediate
compliance for your company!