The Law

Florida Division of Workers’ Compensation Law Information

On January 1st each year the State of Florida publishes workers’ compensation rates that insurance companies in Florida may charge policyholders. This is often called the “state rate”, the “standard” rate, or the “manual rate” which is equal to a % of each employee’s payroll.

Key Coverage Requirements

Here’s what you need to know about Florida Workers Compensation Law coverage requirements. An employer engaged in the construction industry that employs 1 or more part or full time employees or an employer in the non-construction industry that employs 4 or more part or full time employees must have Florida workers’ compensation insurance. Employee includes: Corporate officers, and for construction industry employers, limited liability company members 440.02(9), sole proprietors, and partners. Corporate officers, who for construction industry employers, includes a member of a limited liability company, are eligible to elect to be exempt from the provisions of Chapter 440.

An employer in the construction industry shall require any sub-contractor who sub-contracts work from an employer to provide evidence of Florida workers’ compensation insurance. If the sub-contractor has a valid exemption, then the sub-contractor shall also provide a copy of his or her certificate of exemption to the employer 440.10 (c).

A change in job duties performed by employees or an increase in the amount of payroll of a business must be reported to the insurance company.

If an employer has secured workers’ compensation coverage for his or her employees by entering into an employee leasing arrangement, the employer must specifically identify coverage for each and every employee. The employer must notify the employee leasing company of the names of all the covered employees and any additional employees that are working on a jobsite that may have been excluded from the employee leasing arrangement. Any change in job duties performed by the employees must also be reported to the employee leasing company.

Division Enforcement Provisions (Section 440.107, F.S.)

The Florida Division of Workers’ Compensation is responsible for enforcing employer compliance with the coverage requirements of the workers’ compensation law. Compliance investigators have the authority to conduct on-site inspections of job sites to ensure employer compliance. Investigators can also request an employer’s business records. An employer must produce the required business records within five business days of the division’s written request for records. If the employer fails to respond to the request within five business days, the division will issue a stop work order upon the employer requiring the employer to cease all business operations in the state.

A stop work order will also be issued to any employer who is required to secure Florida workers’ compensation coverage but fails to do so. A stop work order will also be issued in cases where an employer may have a workers’ compensation policy but understates or conceals payroll, misrepresents or conceals employee duties or fails to utilize Florida’s class codes and workers’ compensation rates.

In order for the division to release a stop work order, an employer must provide evidence that it has come into compliance and has paid the monetary penalty, or entered into a payment agreement with the division.