Who Is Exempt From Florida Workers’ Compensation?

The strong majority of businesses in Florida are required to carry workers’ compensation coverage in case an employee is injured on the job. In exchange for workers’ compensation benefits, an employee makes an unspoken agreement not to file suit against their employer alleging negligence. However, a small percentage of Florida companies will qualify for what is known as an exemption, though they must meet certain requirements before taking advantage of it.

Required For Most

The state of Florida requires almost every business that operates within its borders to carry workers’ compensation coverage, to ensure that their employees are able to focus on healing after an injury. The main question in terms of whether or not a business must have coverage is the number of full-time employees; for example, if a business has fewer than 4 employees, and they are not in the construction industry, they are not required to carry coverage – but a business in the construction industry must carry coverage if they have even one employee.

This is all accurate unless the business qualifies for an exemption. As stated, a business may be exempted from the requirement to carry workers’ compensation insurance if they are too small, but it is also possible sometimes for certain officers of a company (or the owner) to file for a personal exemption from coverage. While it may sound strange to choose to not have insurance, there are reasons why a corporate officer might choose this path.

Exempt At One’s Own Risk

Corporate officers and limited liability company (LLC) members are permitted to file for exemptions. If they are approved, they will receive a certificate from the Florida Division of Workers’ Compensation (DWC) confirming their exempt status. Employees cannot make this decision because of workers’ compensation being the ‘exclusive remedy’ for them – that is, workers’ compensation is the only way an injured employee can seek benefits after an on-the-job injury.

The most common reason why officers may choose to be exempt is to save money on insurance premiums, though they may simply have better coverage from another source. However, saving money in this fashion can carry significant consequences, particularly if that officer or LLC member is hurt at work. An exempt employee cannot collect any kind of benefits, and is not even considered an employee for workers’ compensation purposes.

Contact An Orlando Workers’ Compensation Attorney

Workers’ compensation coverage can be difficult and expensive to maintain, and sometimes personal exemptions can help drive down premium costs. However, the risks may not be worth the costs – only you know your business for sure. If you have questions about workers’ compensation coverage, the Orlando workers’ compensation attorneys from the Hornsby Law Group are ready to listen. Call our office today to schedule a consultation.

Source:

myfloridacfo.com/division/wc/employer/coverage-requirements