Workers Comp Exemption Details

Corporate officers, other than those in the construction industry, who elect to be exempt from coverage, must file a form to be described by the Division. The election takes effect 30 days after filing. This election may be revoked at any time by filing notice of the officer’s desire to again be covered. Notice of election to be covered also takes effect 30 days after the application is received by the Division or when it is issued by the Division, whichever is first. However, if a corporate officer is injured during the 30-day period, the election of coverage is retroactive to 12:01 a.m. of the day following the date it was mailed.

Sole proprietors and partners in non-construction who desire to be covered must file a form prescribed by the Department. As with corporate officers, to change one’s status another form prescribed by the Division has to be filed and the 30-day rule applies to the effective date.

In the 2003 Legislation, different procedures were adopted for the construction industry. All employees in the construction industry must be covered and “employee” includes officers, unless exempted, sole proprietors and partners. Only three exemptions per corporation are permitted and 10% ownership in the corporation is required. The procedures for corporate officers, in the construction industry to elect or withdraw an exemption are more complicated. As above, notice of the election must be filed with the Division. The form must be signed under oath and notarized. It must contain the following information:

  1. Name of person making the election;

  2. The person’s federal tax identification number;

  3. The person’s social security number;

  4. A list of the person’s contractor licenses and registrations;

  5. A statement that the person is not entitled to WC benefits;

  6. A statement that the business has not exceeded the exemption limits for the corporate officers;

  7. A statement that any employees of the business are covered by workers’ compensation; and

  8. A list of each corporation that employs the person and the federal tax identification number or social security number or each listed entity.

In 1998, the legislature also required construction industry exemptions to include relevant documentation of employment status filed with the IRS and a copy of the person’s occupational license.

A new filing must be made each time the person is employed by an entity not listed on the previous filing. Revocation of the election must be done by filing a form prescribed by the Division. Any subcontractor who revokes a pervious exemption must also notify his contractors. As above, the 30-day rule applies as to the effective date of any filing.

The WC Division must assess a fee of $50 for each election or renewal in the construction industry and, until 1999, a $50 fee for each election or renewal in the non-construction area. However, in 1999, the legislature revoked the Division’s authority to charge for non-construction elections or renewals.

For links to the exemption forms and more information, please visit the exemption section of the FloridaWC Learning Center.