WORKERS’ COMPENSATION EXEMPTIONS

At Licenses Etc., we believe in sharing important information with our clients and the contracting community. Below, we want to bring attention to the issue of workers’ compensation exemptions.

An employer in the construction industry 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 a minimum 10% ownership of the business. If exempt, as approved by the Division of Workers’ Compensation, the corporate officer or LLC member would not be included in the count of employees.

What does this mean for the sole proprietor? If you elect to move forward as a sole proprietor or an individual, you will have to get a policy. There can be no exemptions in these cases.

If workers’ compensation insurance is needed, please contact an insurance agent who can assist with obtaining a policy. Also, you may consider entering into an employee leasing arrangement with a professional employer organization that secures workers’ compensation coverage on behalf of its clients.

If you have any questions about this process or need help with getting your contractor’s license, our team here at Licenses Etc., can help! We make the license application process simple and fast. To contact us and get the process started, click here or call 239-777-1028.