Florida workers' comp exemption: a plain-English guide for construction

What the application certifies

Florida law sets out what the notice of election has to say. Among other things, Section 440.05 of the Florida Statutes says it "must certify that any employees of the corporation whose officer elects an exemption are covered by workers' compensation insurance, and must certify that the officer electing an exemption has completed an online workers' compensation coverage and compliance tutorial developed by the department."

Two things follow from that, as the statute reads:

1. The exemption is personal. It's about the officer who elects it, not the company's workers.
2. Employees are still expected to be covered. The application itself certifies that they are.

How long does a Florida exemption last?

According to Section 440.05, "A certificate of election to be exempt which is issued on or after January 1, 2013, in accordance with this section is valid for 2 years after the effective date stated thereon." The statute also says it may be revoked before then, by the officer or by the state, if the requirements aren't met.

In practice, that means an exemption has an end date, much like an insurance policy, and may need renewing. The Division's online system lets applicants apply, renew, modify an application, or print their certificate.

How do you apply?

The Division handles exemptions through its online system, reached from the construction exemption page. Based on the requirements above, applicants may want to have ready:

• The business's active registration with the Division of Corporations
• Their listing as an officer (or LLC member) and ownership of at least 10 percent
• A valid driver's license
• Completion of the state's online coverage and compliance tutorial
• The application fee

If you're unsure whether you qualify, the Division's customer service and a licensed insurance agent are good people to ask before filing.

What a Florida exemption may not cover

Because the exemption is personal, it may not speak for anyone else on a job. A few situations worth thinking through with an agent:

• The exempt owner brings a crew. The exemption relates to the owner, and the law expects employees to be covered.
• The owner hires their own subs. Those workers may have their own coverage questions.
• Liability coverage. An exemption relates to workers' comp only. It says nothing about general liability insurance.

For general contractors: what to keep on file

When a sub gives you an exemption instead of a workers' comp certificate, many GCs:

1. Keep a copy of the certificate in the sub's file, alongside their other documents.
2. Note the effective date and the 2-year end date, and ask for the renewal ahead of time, just as they would for a certificate of insurance.
3. Check who it names, and whether that person is connected to the business being paid.
4. Ask who will actually be working. If a crew is involved, that's a question for your agent.
5. Still collect a general liability certificate.

This can matter at a workers' comp audit, where an auditor may look at each sub you paid and what you had on file for them. How a carrier treats a given payment can depend on the facts and on the carrier; your agent can explain how yours approaches exemptions.

For subcontractors: making it easy for your GCs

If you hold an exemption, GCs you work with may ask for a copy before paying you, and again when it renews. Keeping a current PDF handy, and sending your renewed certificate before the old one ends, may save a payment delay.

Frequently asked questions

Who can get a workers' comp exemption in Florida construction?

According to the Division's construction exemption page, corporate officers and LLC members who own at least 10 percent of an active business registered with the Division of Corporations may apply, with no more than three exempt officers per business or affiliated group, along with other requirements listed on that page.

How long is a Florida workers' comp exemption good for?

Under Section 440.05 of the Florida Statutes, a certificate issued on or after January 1, 2013 is valid for 2 years after its effective date, unless it's revoked sooner.

Does a Florida exemption cover my employees?

As the statute reads, no. The exemption is for the officer who elects it, and the notice of election must certify that the business's employees are covered by workers' compensation insurance.

How much does a Florida construction exemption cost?

The Division's construction exemption page lists a $50 application fee. Fees can change, so the current page is the place to confirm.

Should a general contractor accept an exemption instead of a certificate of insurance?

That's a decision for each GC with their insurance agent, since it can depend on who is doing the work and how your carrier treats exemptions at audit. Many GCs keep the exemption on file, track its dates, and still collect a general liability certificate.

Where can I check the current rules?

The Florida Division of Workers' Compensation's exemptions pages and Chapter 440 of the Florida Statutes are the authoritative sources.

How CertiSub handles exemptions

In CertiSub, an exemption is its own document type on a sub's file. Once you confirm one, it shows as "exemption document on file," and the missing workers' comp line isn't flagged for that sub. Whether an exemption is valid for a job is your determination, not ours. CertiSub records what you've filed, keeps the dates in view, and sends renewal reminders like any other document.