Getting workers compensation wrong in Florida means immediate stop-work orders and penalties starting at $1,000. The Florida workers compensation rules for employers aren’t suggestions—they’re legal requirements enforced by the Florida Bureau of Compliance through job site inspections across the state.
This guide to workers compensation covers who needs coverage, reporting obligations, and how to avoid penalties that catch thousands of businesses off guard. Whether you’re in the construction industry, agricultural industry, or running a non-construction business, understanding these compensation laws protects your operations.
Key Takeaways
- Construction businesses need coverage with just one employee, while non-construction employers must have insurance with four or more workers on staff.
- Florida penalties for missing coverage include stop-work orders, minimum $1,000 fines, or double what you would have paid in premiums—whichever is greater.
- Employers must report workplace injuries to their insurance carrier within seven days or face fines between $100 and $500.
Florida Workers Compensation Coverage Requirements for Employers
Florida statutes under Chapter 440 set clear thresholds for when businesses must carry workers compensation insurance. These requirements vary by industry, and the state takes enforcement seriously.
Who Needs Workers Compensation Coverage
As we said, Florida sets different coverage thresholds based on your industry:
- Construction businesses: One or more employees (contractors, subcontractors, and construction companies of any size)
- Non-construction employers: Four or more employees (full-time and part-time workers)
- Agricultural businesses: Six or more regular employees, OR 12 or more seasonal employees working 30+ days per season (max 45 days per year)
Corporate officers and limited liability company members count as employees. Also, out-of-state employers must follow Florida’s rules, with home state insurance policies specifically listing Florida in the coverage area.
Where Florida Employers Get Workers Compensation Coverage
Most businesses purchase compensation insurance from private insurance carriers licensed in Florida. These insurance policies provide medical benefits, disability payments, and financial support for injured employees. Larger employers can apply for self-insurance authorization from the Florida Division of Workers Compensation. The Florida Workers’ Compensation Joint Underwriting Association serves as the insurer of last resort for businesses that can’t get coverage elsewhere.
One critical rule: employers must pay the entire insurance premium. Florida law prohibits requiring employees to contribute toward workers compensation costs.
Florida Workers Compensation Exemptions: Who Qualifies
Not every business owner or worker needs workers compensation coverage. Florida provides specific exemptions, but you must apply for them properly.
Exemption Requirements for Employers
Sole proprietors and partners in non-construction businesses can operate without coverage. They’re not considered employees under Florida workers compensation laws. However, they can choose to purchase insurance for themselves if they want protection.
Corporate officers and LLC members have more options. Officers who own at least 10% of the company can apply for an exemption. The rules differ between industries:
Construction industry exemptions:
- Up to three corporate officers can claim exemptions
- Each officer must own at least 10% of the business
- Must be registered with the Florida Division of Corporations
- $50 application fee per officer
Non-construction exemptions:
- Unlimited number of corporate officers can apply
- Same 10% ownership requirement applies
- No application fee
Independent contractors aren’t covered under your workers compensation policy. That’s because they work for themselves, not for you. But be careful here. Misclassifying employees as contractors creates serious liability.
The Florida Exemption Process and Ongoing Duties
Corporate officers must file a Notice of Election to be Exempt through the Florida Division of Workers Compensation’s online system. Exemptions expire annually and require renewal each year.
Construction businesses must verify that all subcontractors carry proper insurance coverage or hold valid exemptions. You can confirm their status through the state’s proof of coverage database. Keep copies of all exemption certificates accessible. The Bureau of Compliance may request them during inspections, and you’ll need documentation if a subcontractor’s worker gets injured on your site.
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Employer Responsibilities: Florida Workers Compensation Reporting Requirements
Florida law imposes strict deadlines for reporting workplace injuries. Missing these deadlines triggers fines and creates problems for injured workers who need benefits.
When Employee Injuries Occur
Workers must report any injury or illness to their employer within 30 days of the accident. If the condition develops over time, they have 30 days from when a doctor diagnoses it as work-related. This initial notification starts the claims process for both full-time employees and part-time employees.
Once you learn about an injury or illness, these reporting deadlines apply:
Standard injuries (medical-only and lost-time claims):
- File DWC-1 form with insurance carrier within seven days
- Submit 13-week wage statement within 14 days (lost-time claims only)
- Medical-only claims involve injuries where workers miss seven or fewer days
Workplace deaths:
- Notify Division of Workers Compensation within 24 hours by phone
- Notify insurance carrier within seven days
First aid cases:
- No formal state reporting required
- Must maintain employee records per Florida administrative code
Again, the seven-day clock for filing the DWC-1 form starts when you learn about the injury or illness, not when it happened. This distinction matters if an injured employee reports an older workplace injury or illness.
Records Employers Must Maintain
Florida requires keeping workers compensation records for at least three years. These recordkeeping obligations ensure you can respond to disputes and investigations. Keep these documents organized and accessible:
- Injury reports and DWC-1 forms
- Medical bills and treatment records
- Communications with your insurance company
- Information about changes to injured worker’s work status
- First aid treatment documentation
Every workplace must also display the required workers compensation poster. This notice, often called the “broken arm” poster, tells employees about their rights and employer obligations. It includes your insurance carrier information so workers can file compensation claims directly if needed.
The poster must be placed where all employees can see it. Break rooms, time clock areas, and main entrances work well for workplace postings. As a quick aside, Mosey’s Notice Board is a lifesaver for staying compliant with labor posters for remote teams, automating a tedious but critical function that often slips through the cracks.
Florida Workers Compensation Penalties: What Employers Risk
Operating without required workers compensation insurance brings immediate and severe consequences. The state enforces these rules aggressively.
Financial Penalties for Missing Coverage
The Bureau of Compliance conducts random job site inspections throughout Florida—Tampa, Orlando, Miami, and beyond. The point is, they’ll find you. And when investigators find employers operating without insurance coverage, they issue stop-work orders on the spot under circumstances defined by Florida state law. These orders halt all business operations immediately. You cannot work, generate revenue, or fulfill contracts until you comply and pay penalties.
The financial penalties are substantial:
- Base penalty: $1,000 minimum OR double your premiums (whichever is greater)
- Lookback period: State calculates premiums based on two years of payroll and salaries
- Misclassification penalty: $5,000 per worker incorrectly classified as independent contractor
- Late injury reporting: $100 to $500 per incident
For most businesses, the doubled premium far exceeds $1,000. A company with $500,000 in annual payroll might face $20,000 or more in penalties, depending on their industry classification.
These fines also stack on top of each other. Construction companies that misclassified five employees could face over $50,000 in penalties plus the doubled premium calculation. Obviously, many employers facing these penalties have to consult an attorney to understand their options and handle disputes with the Bureau of Compliance, bringing another huge expense into the fold.
Criminal Consequences Under Florida Statutes
Willfully operating without required insurance coverage constitutes a felony under Florida statutes. Courts can impose prison sentences up to 25 years for workers compensation fraud. Filing fraudulent exemption certificates or altered proof of coverage also constitutes criminal fraud.
New Penalty Reductions Available in 2025
Florida introduced penalty relief options for first-time violators. These reductions can significantly lower your total penalty amount:
- 25% reduction: Fully cooperate with all document requests (provide payroll records, employee information, and other materials the bureau requests)
- 15% reduction: Complete the online workers compensation coverage tutorial within 21 days (must score at least 80% on questions)
- Combined savings: Stack both reductions for up to 40% off total penalties
Remember, the reductions only apply to first-time offenses. Repeat violators face the full penalty amounts with no opportunity for reduction.
Common Florida Workers Compensation Coverage Mistakes Employers Make
Most violations are preventable. So, understanding where employers typically go wrong helps you avoid the same problems. Many violators dealing with compensation disputes could have prevented their issues by following these guidelines.
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Misclassifying employees as independent contractors tops the list. Florida uses a “right to control” test to determine worker classification. If you control how work gets done—not just the final result—that person is likely an employee. Providing tools, setting schedules, and directing work methods all indicate an employee relationship. The $5,000-per-worker penalty makes this an expensive mistake.
Waiting until after hiring to secure coverage creates immediate violations. Some employers hire workers first, then try to get compensation insurance. The moment that employee starts work, you need active workers comp coverage. To repeat, the Bureau of Compliance can issue stop-work orders that same day if they catch the violation during an inspection.
Missing reporting deadlines happens frequently. The seven-day window to report injuries moves fast. Employers often think they can wait until the injury’s severity becomes clear. That’s wrong. Florida requires reporting within seven days of knowledge, regardless of how serious the injury seems initially. Those $100-$500 late reporting fines add up quickly across multiple incidents.
Construction businesses failing to verify subcontractor coverage. General contractors bear responsibility for ensuring all workers on their job sites have proper coverage. This includes subcontractors’ employees. Here’s what you need to do:
- Get certificates of insurance from every subcontractor before work begins
- Verify documents through the state’s proof of coverage database
- Include compensation insurance requirements in all subcontractor contracts
- Request updated certificates when policies renew
Using outdated exemption certificates creates technical violations. Exemptions expire annually and require renewal. Employers sometimes rely on old certificates without checking expiration dates. This leaves you operating without valid coverage, even though you thought everyone was properly exempt.
Managing Workers Compensation Requirements Across Multiple States
Of course, each state sets its own coverage thresholds, exemption rules, and reporting requirements. So, what works in Florida doesn’t necessarily apply elsewhere. And manual tracking through spreadsheets breaks down quickly when you’re managing workers compensation deadlines and obligations across multiple states.
Modern automated compliance platforms track compensation requirements and filing deadlines across all 50 states, send alerts before requirements come due, and maintain centralized documentation. This eliminates the manual burden that pulls HR and financial services teams away from strategic work.
Simplify Florida Compliance With Mosey
Managing workers compensation is just one piece of staying compliant as you grow across states. That’s what makes Mosey such an important ally, automating multi-state compliance requirements—state registrations, business filings, regulatory deadlines, and more, all piling up when you operate in multiple locations. Our platform tracks renewal dates, stores critical documents, and alerts you before deadlines become violations. Your team gets complete visibility across all 50 states without the manual tracking that pulls HR and finance away from strategic work.
Ready to stop chasing workers compensation deadlines? Schedule a free demo with Mosey to see how we help employers stay compliant.
FAQ: Florida Workers Compensation for Employers
What are the laws with workman’s comp in Florida?
Florida workers compensation laws require most employers to carry insurance that covers medical expenses and lost wages for work-related injuries. Chapter 440 of the Florida Statutes sets coverage thresholds based on industry and number of employees.
What is the 120 day rule for Florida workers’ compensation?
The 120-day rule doesn’t exist in Florida workers compensation law. The state requires employees to report injuries within 30 days and employers to file reports within seven days.
How many employees before you need workers’ comp in Florida?
Construction businesses need workers compensation with one or more employees, non-construction employers need coverage with four or more employees, and agricultural businesses need insurance with six regular employees or 12 seasonal employees.
What Are the Employer’s Responsibilities When Implementing Workers’ Compensation?
Employers must obtain insurance coverage, display the required workplace poster, report all employee injuries to their insurance carrier within seven days, and maintain injury records for three years. Employers cannot retaliate against workers who file compensation claims.
What Is The Florida Law On Workers’ Compensation Coverage Requirements?
Florida law under Chapter 440 requires construction businesses with one or more employees, non-construction businesses with four or more employees, and agricultural businesses with six or more employees to maintain workers compensation coverage. Employers must pay the full premium cost.
How does workers’ comp in Florida work?
Florida workers compensation provides no-fault insurance that covers injured workers regardless of who caused the accident. The system pays for medical treatment, temporary and permanent disability benefits during recovery, permanent impairment benefits for lasting injuries, and death benefits to surviving family members. These compensation benefits ensure workers receive financial support while unable to work.
How many employees can you have without workers compensation in Florida?
Non-construction businesses can have up to three employees without workers compensation insurance, and agricultural businesses can employ up to five regular employees without coverage. Construction businesses must have insurance starting with their first employee.
