Changes to Florida Workers Comp Exemptions

Starting July 1, 2012, the process to apply for an exemption from workers’ compensation insurance will be completely on-line via the Division of Workers’ Compensation’s website. This will apply to the renewal of an existing exemption, too.

There will be several changes with the new on-line process:

• Exemption applications will no longer have to be notarized.
• Applicants will no longer have to submit copies of stock certificates or other documentation showing that they own 10% of their company. Instead, they will be allowed to provide their percentage of ownership via the on-line application.
• Applicants will now be required to provide their Florida driver’s license number or Florida identification card number, as well as their date of birth.
• In Florida, certain business owners can elect to exempt themselves from workers’ compensation insurance coverage by filing an application with the Division of Workers’ Compensation. For businesses in the construction industry, 3 individuals owning at least 10% each of a corporation or Limited Liability Company (LLC) can be exempt at any one time. For all other industries, only corporate officers can exempt themselves; at this time, owners of non-construction LLC’s do not have the ability to apply for an exemption. Exemptions issued to individuals in the construction industry cost $50 and have to be renewed every 2 years. At this time, non-construction exemptions are free and do not expire.

Two more important changes to the exemption process will take place in the coming year:

• All exemptions (both construction and non-construction) issued beginning January 1, 2013, will have to be renewed every 2 years to remain valid (right now, only construction exemptions have to be renewed every 2 years).
• Beginning July 2013, members of non-construction LLC’s will be allowed to apply for exemptions from workers’ comp.

The new, on-line exemption form will be available by July 1st at the Division’s website at www.myfloridacfo.com/wc. Click on the “Apply for an Exemption” icon. If you have any questions about the exemption process or who needs to be covered under workers’ comp, please feel free to contact the insurance agents at FloridaWC.