What are the requirements for workers compensation coverage?

To comply with The U.S. Department of Laboropens in a new window’s Wage and Hour Division (WHD), your business may need to obtain a workers’ compensation insurance policy, based upon the number of people you employ.  In Florida if you are in an industry, other than construction, and have four (4) or more employees, full-time or part-time, you are required to carry workers’ compensation coverage (an exempted corporate officer does not count as an employee). Section 440.107 Florida Statutes, states in part that; “The Legislature finds that failure of an employer to comply with the workers’ compensation coverage requirements poses an immediate danger to public health, safety, and welfare”.

        An employer in the construction industryopens in a new window who employs one or more part or full-time employees must obtain workers’ compensation coverage. Sole proprietors, partners, members of a limited liability company, and corporate officers are considered employees. While corporate officers and LLC members are defined by law as employees, an officer of an active Florida corporation or member of an active Florida LLC can apply for an exemption, providing they demonstrate ownership of the business.  If exempt, as approved by the WHD, the corporate officer or LLC member would not be included in the count of employees.

        An employer in the non-construction industryopens in a new window who employs four or more part or full-time employees must obtain workers’ compensation coverage. Corporate officers and members of a limited liability company are considered employees. While corporate officers and LLC members are defined by law as employees, an officer of an active Florida corporation or member of an active Florida LLC can apply for an exemption, providing they demonstrate ownership of the business.  If exempt, as approved by the WHD, the corporate officer or LLC member would not be included in the count of employees. Sole proprietors and partners in the non-construction industry are not considered to be employees unless they elect to be employees.

        The WHD conducts routine investigations of Florida employers to assure that the proper insurance is in effect.  When an employer is found to be without workers’ compensation insurance, the law requires the WHD to issue a Stop-Work Order.  A Stop-Work Order requires the immediate cessation of all business operations until the employer comes into compliance with the coverage requirements and agrees to pay the assessed penalty.  The assessed penalty is equal to 2 times the amount the employer would have paid in insurance premium within the preceding 2-year period or $1,000, whichever is greater.

If workers’ compensation insurance is needed, please contact an attorney who can assist with obtaining a policy.  If you seek to obtain workers’ compensation insurance or want information as to whether this actions would be appropriate, schedule a consultation with the experienced attorneys at EPGD Lawopens in a new window today, located in beautiful Coral Gables. Call us at (786) 837-6787 or e-mail us to schedule a consultation. – See more at: http://www.epgdlaw.com/blog




Categories: Employment Law