A Florida workers’ comp exemption certificate lets a business owner or corporate officer opt out of their own company’s workers’ compensation coverage. You apply online through the Division of Workers’ Compensation, and once the certificate is approved you’re no longer treated as an employee under Florida’s workers’ comp law. You also give up all rights to medical and wage benefits for any on-the-job injury.1Florida Department of Financial Services. Exemptions The trade-off matters: pulling a high-salary owner off the payroll can cut insurance premiums substantially, but if you get seriously hurt at work, nothing pays.
Who Qualifies
Eligibility depends first on whether your business is in construction. Florida defines construction broadly to include any for-profit activity involving building, clearing, filling, excavation, or substantial improvement in the size, use, or appearance of any structure or land.2Online Sunshine. Florida Code 440.02 – Definitions If any part of what your company does fits that description, the stricter construction rules apply.
Non-Construction Corporations
Any officer of a non-construction corporation may elect to be exempt. There’s no cap on the number of officers who can be exempt and no minimum ownership percentage.3Florida Department of Financial Services. Exemption Eligibility and Requirements You do have to be listed as an officer in the Florida Division of Corporations records, and the corporation must be registered and active.4Florida Department of Financial Services. Non-Construction Industry Workers’ Compensation Exemption
Non-Construction LLCs
Members of a non-construction LLC face two extra limits: each applicant must own at least 10 percent of the LLC, and no more than 10 members per LLC may hold an exemption at the same time.4Florida Department of Financial Services. Non-Construction Industry Workers’ Compensation Exemption The LLC has to be registered and active with the Division of Corporations.
Construction Industry
Construction is the most restricted category. No more than three officers of a corporation, or three members of an LLC, may be exempt at once, and that cap includes any affiliated entities. Each person must own at least 10 percent of the company’s stock or membership interest.5Florida Department of Financial Services. Construction Industry For a corporation, you need to be both a listed officer and a 10-percent shareholder.2Online Sunshine. Florida Code 440.02 – Definitions
Requirements That Apply to Everyone
Whatever the industry, your business must be registered and active with the Florida Division of Corporations. You cannot apply if you or the business are associated with an active Stop Work Order or Working in Violation order.5Florida Department of Financial Services. Construction Industry And if anyone affiliated with the company is delinquent on a Stop Work Order penalty, that delinquency blocks the exemption.6Online Sunshine. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification
Sole Proprietors and Partners
Sole proprietors and partners don’t need an exemption certificate at all. Florida law already excludes them from the definition of “employee,” so they’re outside workers’ comp by default. If a sole proprietor or partner actually wants coverage, they have to affirmatively elect into it by filing a separate notice with the Division.6Online Sunshine. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification
What to Have Ready Before You Start
The online system doesn’t let you save a partial application and come back to it, so pull everything together first.
On the personal side, you need your full name, date of birth, and a valid Florida driver’s license or state ID number. The statute also requires the notice to include your Social Security number or federal tax identification number.6Online Sunshine. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification A current email address matters, because the Division sends approvals and expiration reminders that way.
On the business side, you need the company’s Division of Corporations registration number and the Federal Employer Identification Number. Construction applicants and all LLC members should be ready to attest to their ownership percentage of at least 10 percent. If you hold certified or registered contractor licenses under Chapter 489, list those too.
How to File
Everything runs through the Division of Workers’ Compensation portal at apps.fldfs.com.7Florida Department of Financial Services. Notice of Election to be Exempt There is no paper option. The steps:
- Finish the short online workers’ compensation coverage and compliance tutorial the portal requires before you can start the application.7Florida Department of Financial Services. Notice of Election to be Exempt
- Enter your personal and business information, then confirm your eligibility based on industry and ownership.
- Electronically certify that everything is accurate, that you understand you won’t be entitled to workers’ comp benefits, and that any non-exempt employees of the company are covered by workers’ comp insurance.8Florida Senate. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification
- If you’re in construction, pay a $50 application fee plus a $1 convenience fee. The system accepts Visa, MasterCard, Discover, American Express (including prepaid cards), or a direct debit from a checking or savings account. Non-construction applicants pay nothing.7Florida Department of Financial Services. Notice of Election to be Exempt5Florida Department of Financial Services. Construction Industry
Once you submit, the Division has up to 30 days to review eligibility. The exemption takes effect either when the Division issues it or 30 days after receiving the application, whichever comes first.8Florida Senate. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification Approval arrives by email, and you can print the official Certificate of Election to be Exempt directly from the online system.
How Long the Certificate Lasts
A certificate is valid for two years from its effective date. Both dates are printed on the face of the certificate.8Florida Senate. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification At least 60 days before it expires, the Division sends a reminder to the email or address on file.
Renewal is not automatic. You go through the same online application again, including the $50 fee for construction.5Florida Department of Financial Services. Construction Industry Let it lapse and you are immediately treated as an employee for workers’ comp purposes, which means the company’s insurer can retroactively add you to the payroll calculation and charge a higher premium going back to the expiration date. The reminder goes to whatever contact information you had on file when you first applied, so if your email or address has changed, update it or you may never see the notice.
The Division can also revoke a certificate at any time if you stop meeting the eligibility rules. Common triggers include a change in ownership that drops you below 10 percent, removal as an officer from Division of Corporations records, or a Stop Work Order against the company.6Online Sunshine. Florida Code 440.05 – Election of Exemption, Revocation of Election, Notice, Certification
Revoking Your Own Exemption
If you want workers’ comp coverage back, you can revoke the exemption through the Division’s online revocation portal. The revocation can be filed by the person named on the certificate or by any corporate officer of the business listed with the Division of Corporations. You’ll be asked for the exempt person’s name as it appears on the certificate, the business type, company name, FEIN, the Division of Corporations document number, and the name of the workers’ comp carrier covering non-exempt employees. If you’re a subcontractor or an officer of a subcontracting corporation, Florida law requires you to notify your general contractor that you’ve revoked.9Florida Department of Financial Services. Revoke Exemption
Penalties for a Fraudulent Exemption
Putting false information on the application is insurance fraud under Florida law. Presenting any false, fraudulent, or misleading statement as evidence of eligibility is a criminal offense, and the felony level scales with the dollar amount involved:10Online Sunshine. Florida Code 440.105 – Prohibited Activities, Penalties
- Under $20,000: third-degree felony.
- $20,000 to under $100,000: second-degree felony.
- $100,000 or more: first-degree felony.
The monetary value typically reflects avoided premium costs or unpaid benefits. These charges are not theoretical. The Division investigates complaints, and fraudulent exemptions are one of the most common enforcement targets in the construction industry. A fraudulent certificate is also treated as invalid from the start, which can leave you personally exposed for any injury claim that arose while you were relying on it.