Employers

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Workers' Compensation Exemption Eligibility Requirements and Info

General Information

Notice of Election to be Exempt - 440.05(14), F.S. - An officer of a corporation who elects exemption from this chapter by filing a certificate of election under this section may not recover benefits or compensation under this chapter. For purposes of determining the appropriate premium for workers' compensation coverage, carriers may not consider any officer of a corporation who validly meets the requirements of this section to be an employee.

Eligibility

Exemption Eligibility Requirements are outlined below. These are statutory requirements that can be found in 440.05, F.S. and Rule 69L-6.012 [Word], F.A.C.

• Construction Industry Exemption Requirements:
  • The corporation must be registered and listed as active with the Florida Department of State, Division of Corporations.
  • The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations. Members of a limited liability company are considered corporate officers (in the construction industry only).
  • The applicant must own at least 10 percent of the stock of the corporation as evidenced by a stock certificate or, in the case of an LLC, a statement attesting to the minimum 10 percent ownership.
  • No more than three officers of a corporation (including LLC) or of any group of affiliated corporations (including LLCs) may elect to be exempt.
  Additionally:
  • A $50.00 application fee is required.
  • Construction exemptions are valid for a period of 2 years or until a revocation is filed or until revoked by the Division.
  • The original effective and expiration dates are listed on the Certificate of Election to be Exempt, which is mailed to the exempted individual.
• Non-construction Industry Exemption Requirements:
  • The corporation must be registered and listed as active with the Florida Department of State, Division of Corporations.
  • The applicant must be listed as an officer of the corporation in the records of the Florida Department of State, Division of Corporations.
  Additionally:
  • There is no limit to the number of corporate officers eligible to obtain an exemption.
  • There is no application fee.
  • Non-construction exemptions are valid until a voluntary revocation is filed or the exemption is revoked by the Division.
  • Non-construction limited liability company members are not eligible to elect to be exempt from the coverage requirements of Chapter 440, F.S.

How to obtain an exemption application

To apply for an exemption, complete form DWC 250 Notice of Election to be Exempt. Please review the Instructions prior to completing the form.

To obtain an application of for additional information about workers’ compensation exemptions, please call customer service at 850-413-1601 / 800-742-2214. You may also visit one of the Bureau of Compliance offices.

Once received, the Division has 30 days to review your application to determine if it meets the eligibility requirements for the issuance of an exemption. The Division will either:

• Issue a Certificate of Election to be Exempt. The Certificate of Election to be Exempt will be mailed to the address shown on the application no later than the second business day after issuance. Allow 7-10 days mailing time.
• Notify you by mail that your application is incomplete and what information or documents are needed to complete the application.
• Deny the exemption - If the Notice of Election to be Exempt is denied, the applicant must submit a new Notice of Election to be Exempt and, if the applicant is engaged in the construction industry, another $50.00 fee is required.

The Division reviews and processes exemption applications in the order they are received. Exemption information will be reflected on the Proof of Coverage Database the day following the issuance of the exemption.

Exemptions are effective on the date they are issued by the Division.

Certificates of Election to be Exempt shall apply only to the corporate officer named on the Notice of Election to be Exempt and apply only within the scope of the business or trade listed on the Notice of Election to be Exempt.

An exemption is subject to revocation if the person named on the certificate no longer meets any of the requirements to be eligible for an exemption. To voluntarily revoke an exemption, complete a Revocation of Election to be Exempt, form DWC 250-R.

Additional resources that may be helpful when completing the Notice of Election to be Exempt:

• A Federal Employer Identification Number (FEIN) is required to obtain an exemption unless the employer is a single member Limited Liability Company. FEINs are issued by the Internal Revenue Service.  For information, see Obtaining a Federal Employer Identification Number (FEIN).
• Refer to Sunbiz.org, Florida Division of Corporations' Sunbiz™ web site. This website allow you to search and access filed information for corporations, limited liability companies, limited partnerships, general partnerships, trademarks, fictitious name registrations and liens.
• Refer to dba Florida GUIDE for general information on: Forms, Permits & Licenses, choosing a Legal Structure, Fictitious Names, Preparing a Business Plan, Limited Liability Companies etc.
• Department of Business and Professional Regulation (DBPR) is responsible for both Professional Regulation and Business Regulation.
  • The Construction Industry Licensing Board and the Electrical Contractors' Licensing Board provide valuable information on license information including License Categories, Definition of Occupation, Registration/Certification, qualified business license etc.
  • The Licensee Search of DBPR Online Services website provides information about applicants and licensed individuals for those professions and businesses that are regulated by the Department of Business and Professional Regulation.
• National Council on Compensation Insurance, Inc. (NCCI)
  • Classification Codes - The classification code assigned to a business is the key factor in determining if the employer is considered to be in the construction industry. If an employer has a Workers’ Compensation policy, then the insurance carrier has assigned that employer a classification code.  The employer may refer to its workers’ compensation policy or contact the insurance carrier to determine which code(s) is assigned to its business. For those employers who do not have a workers’ compensation policy, a classification code may be requested by calling NCCI at 1-800-622-4123. The Division has adopted the classification codes and descriptions that are specified in the Florida Contracting Classification Premium Adjustment Program and published in the Florida exception pages of the NCCI, Basic Manual (1996 ed., issued January 21, 2003). Refer to Rule  69L-6.021 [Word], F.A.C. for a complete listing of construction classifications.

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