Question: I have a painting business, what should be the class code and workers compensation rates for my employees?

There are few classification codes for your employees depending on the type of work you perform. They are listed below along with the rates for each:

5474 - This classification code is the general painting classification. It contemplates exterior and interior painting of residential or commercial structures that are constructed of wood, concrete, stone or a combination thereof regardless of height. Commercial structures include but are not limited to office buildings, stores, theaters and auditoriums. Additionally, paperhanging conducted in connection with painting operations is assigned also assigned to this classification in addition to surface preparation and other work incidental to the painting process as well as the installation and dismantling of scaffolding or other equipment used to facilitate the painting process when performed in conjunction with an insured’s painting operations at a particular job site. The Florida rate for this classification in 2007 was 13.51 and in 2008 it is now 9.7 dollars for every 100 dollars of remuneration.

9501 - This classification is applied to employees engaged in the business of painting in the insured’s shop or those risks engaged in sign painting or lettering at a customer’s premises. Articles painted may include goods manufactured by others or component parts made from wood, metal, glass, leather or plastic. The operations include the preparation of the paint-receiving surface, which may involve degreasing, sanding or wire brushing; the application of paint by hand brushing, rolling, spraying or dipping; and drying in ovens using infrared lamps or natural ventilation. This classification also includes drivers, so employees that pick-up or deliver articles to be painted are included. The Florida rate for this classification in 2007 was 6.33 and in 2008 it is now 3.97 dollars for every 100 dollars of remuneration.

9505 - This classification is applied to employees engaged primarily in the painting or repainting of automobile or carriage bodies. The operations contemplate sanding, masking, spray painting and baking. The classification includes incidental body repair in the sense that dents that are hammered out or rust spots that are removed are considered to be normal operations preparatory to painting. Where these paint shops go beyond the minor renovating work and engage in structural repair, then they should be classified as a secondary business covered under code 8393 for Auto Body Repair. Specialist contractors engaged in the application of undercoating to automobiles utilizing either modified spray painting equipment or hand brushes have been assigned to this 9505 classification code as well as specialists engaged in painting pinstriping or other designs or artwork on automobile bodies. Refer to Code 9522 for insureds engaged in the business of affixing striping tape to vehicle bodies. Code 9505 is also applied to insureds engaged in painting conducted in conjunction with automobile, bus, truck or trailer body manufacturing or painting of bus, truck or trailer bodies that have been repaired by the body manufacturing plants. The Florida rate for this classification in 2007 was 7.61 and in 2008 it is now 6.67 dollars for every 100 dollars of remuneration.

5037 - This classification is applied to employees that paint metal structures which exceed two stories in height. For commercial structures, a “story” is defined as being fifteen (15) feet in height. The painting of metal structures falling within the scope of Code 5037 includes metal skeleton frameworks of buildings exceeding two stories; smokestacks; cross-country power line towers; radio towers; television towers; aircraft; aircraft beacon towers; and observation towers. This classification contemplates both the installation of scaffolding and the preparation of surfaces to be painted when these operations are performed by an insured in conjunction with an insured’s painting operations at a particular job site. Code 5037 is not intended to apply to painting the interior or exterior of buildings or other structures which are made of wood, concrete, stone or a combination thereof. This classification is also applied to contractors engaged in the painting of metal bridges of all types regardless of height and encompasses the painting of viaducts, railroad overpasses, trestles and elevated highways. The Florida rate for this classification in 2007 was 35.28 and in 2008 it is now 33.16 dollars for every 100 dollars of remuneration.

6874 and 6884 - Both of these classifications are used for employees that paint ship hulls.

 At FloridaWC.com, we can help classify your payroll into the appropriate classification code and would like to provide your painting business with quotes on Florida workers’ compensation insurance. Please give us a call or complete our online workers’ compensation quote request form to get started. Also, let us know if you have any other workers’ compensation questions.

Question: If I have a small claim that I paid, should I report that to my workers’ compensation insruance company?

 Yes, you are required to report all employee injuries to your workers’ compensation insurance company within 7 days of the injury. It is always best to report injuries as soon as possible. If there are no cost to the claims, then they will not effect your future premium because those claims are taken off your record when computing your workers’ compensation experience modifier. It is always best to let your insuranc ecompany know about claims and why they happened so you can use preventative measures to keep them from reoccuring.

Question: Will establishing a safety program save me money on my insurance premiums?

Yes, If you set up a writeen safety program, you may be eligible for a 2 percent premium credit from your insurance carrier on your workers’ compensation insurance premium. In addition to the premium credit, having a Safety Program will make your workplace safer, which may result in fewer accidents and therefore reduce your future workers’ compensation costs. Click here for more information on the Safety Program Premium Credit.

Question: Are independent contractors considered employees?

Independent contractors are not employees. Prior to 1990, independent contractor was not defined. In the 1990 law, independent contractor was defined as someone whose actual conduct is not subject to the control and direction of the employer.

In 2003, the Legislature amended the definition of independent contractor to the six criteria below:

1. The independent contractor maintains a separate business with his or her own work facility, truck, equipment, materials, or similar accommodations;

2. The independent contractor holds or has applied for a federal employer identification number, unless the independent contractor is a sole proprietor who is not required to obtain a federal employer identification number under state or federal regulations;

3. The independent contractor receives compensation for services rendered or work performed and such compensation is paid to a business rather than to an individual;

4. The independent contractor holds one or more bank accounts in the name of the business entity for purposes of paying business expenses or other expenses related to services rendered or work performed for compensation;

5. The independent contractor performs work, or is able to perform work, for any entity in addition to or besides the employer at his or her own election without the necessity of completing an employment application or process; or

6. The independent contractor receives compensation for work or services rendered on a competitive-bid basis, or completion of a task or a set of tasks as defined by a contractual agreement, unless such contractual agreement expressly states that an employment relationship exists.

In order to meet the definition of independent contractor, in non-construction at least four of the six criteria must be met. In the construction industry, all six criteria listed above must be met.

Note: The “independent contractor” status of individuals engaged in certain agricultural, forestry, or farming occupations, and newspaper delivery persons, are not governed by the six criteria listed above, but rather by common law principles (Internal Revenue Service guidelines are often cited), pending a review of the actual business activity of the individual.

Question: As the owner of the business, can I exclude myself from my workers’ compensation policy?

Yes, an individual that is an officer of a corporation can elect to be exempt from workers’ compensation coverage. This will exclude the officer from recovering workers’ compensation benefits, but by doing so, the individual may remove their payroll from the total payroll that is used to compute the premium. Many employers choose to be exempt on their workers’ compensation policies to save money on their premium. Our website has more information on the requirements and the form you need to download and file with the State of Florida. Click here for more information on Officer Exemption from Florida Workers Compensation Insurance.

Question: Will becoming a drug free workplace save me money on my insurance premiums?

Yes, If you implement a drug free workplace program in accordance with the criteria set forth in s440.102 of the Florida Statutes, you may be eligible for a 5 percent premium credit from your insurance carrier on your workers’ compensation insurance premium. In addition to the premium credit, having a Drug Free Workplace Program may make your workplace safer, resulting in fewer accidents, which may reduce your workers’ compensation costs. Click here for more information on the Drug Free Workplace Premium Credit.

Question: Can an employer be liable for double compensation on a workers compensation claim?

 Yes, an employer can be liable for double compensation if a minor child is injured while employed in violation of any of the conditions of the child labor laws of Florida. the employer alone, not the insurance carrier, is liable for up to double the normal compensation as provided by the Workers’ Compensation Law. To receive further infomration regarding the Child Labor Law, call the Child Labor Office at 1-800-226-2536.

Question: Is compensation payable if an employee refuses to use a safety appliance like a hard hat, safety goggles or observe a safety rule?

The workers compensation policy will still cover the injuries, but indemnity benefits (partial wage replacement) may be reduced by 25 percent if the employee knew about the safety rule prior to the accident and failed to observe the rule, or if the employee knowingly chooses not to use a safety appliance which the employer has directed him to use.

Question: If I suspect a business should have workers’ compensation insurance coverage, but it does not, or if I suspect fraudulent activity in a workers’ compensation claim, where do I report this?

Suspected workers’ compensation fraud can be reported directly to the:

Department of Financial Services
Bureau of Workers’ Compensation Fraud
200 E. Gadsden Street, Suite 100A
Tallahassee, Florida 32301

The bureau’s toll free number is 1-800-378-0445. Suspected fraud can also be reported to the Florida Workers’ Compensation Bureau of Compliance’s toll free number at 1-800-742-2214. Anonymous calls are accepted.

You can also fill out the Non-Compliance Referral Form to report employer’s who do not have workers’ compensation insurance coverage. This form can be accessed at the Division’s website at www.myfloridacfo.com/wc/databases.html. This website also has a compliance section where you can check to see if  business has records of carrying workers’ compensation insurance.

Question: What kinds of employee injuries are not covered under workers’ compensation insurance?

Under the current Florida law, workers’ compensation insurance policies do not provide compensation for the following conditions:

- A mental or nervous injury due to stress, fright, or excitement

- A work related condition that causes an employee to have fear or dislike for another individual because of the individual’s race, color, religion, sex, national origin, age, or handicap

- “pain and suffering” has never been compensable in Florida, nor is it compensable in any other state. The employer may not sue an injured worker for causing a catastrophe nor can the injured worker sue the employer for their injury. This trade-off makes it possible for injured workers to receive immediate medical care, at no cost to the injured worker, without any consideration for who was at fault, the employer or the employee. In civil law, negligence must be established through litigation before any compensation is awarded.

- If the injury is caused by the employee’s willful intention to injure or kill himself or another

- If the injury is caused primarily because the employee is intoxicated or under the influence of drugs

- If the injury or death of the employee is covered by the Federal Employer’s Liability Act, the Longshore and Harbor Workers’ Compensation Act, or the Jones Act (if the employee is a seaman or member of a crew).