What Is a Workers' Comp Exemption in Florida?
A workers' compensation exemption in Florida allows certain corporate officers and LLC members to exclude themselves from workers' compensation coverage. This means they are not covered if they are injured on the job — but it also means the company does not need to pay workers' comp premiums on their wages.
Exemptions are available to officers of corporations and members of LLCs who meet specific ownership requirements. They are not available to sole proprietors, partners in general partnerships, or employees who are not officers or LLC members.
Who Qualifies for a Workers' Comp Exemption in Florida?
To qualify for a workers' compensation exemption in Florida, you must meet all of the following requirements:
- Ownership requirement: You must own at least 10% of the stock of the corporation (or be a member of an LLC). For construction companies, the maximum number of officers who can be exempt is three.
- Corporate officer or LLC member: You must be listed as an officer of the corporation or a member of the LLC in the Florida Division of Corporations records.
- Construction industry: Construction exemptions are limited to a maximum of three officers per company. Non-construction exemptions have different rules.
- Valid exemption certificate: You must have a current, valid exemption certificate issued by the Florida Division of Workers' Compensation. Exemptions expire every two years and must be renewed.
How to File a Workers' Comp Exemption in Florida
To file a workers' compensation exemption in Florida:
- Go to the Florida Division of Workers' Compensation website at myfloridacfo.com/division/wc
- Complete the Notice of Election to Be Exempt form (DWC-250-R for construction, DWC-250 for non-construction)
- Pay the $50 filing fee
- Wait for approval — the Division typically processes exemptions within 30 days
- Receive your exemption certificate — keep a copy on you at all times on job sites
Remember: Your exemption expires every two years. Set a calendar reminder to renew before it expires — an expired exemption is the same as no exemption.
Common Exemption Mistakes That Lead to Fines
⚠️ These Mistakes Can Cost You Thousands
- • Expired exemption: An exemption that expired even one day ago is invalid. Inspectors check the expiration date.
- • Wrong company: An exemption is tied to a specific company. If you form a new LLC, you need a new exemption.
- • Employees not covered: Your exemption covers only you — not your employees. If you have workers, they need coverage.
- • Subcontractor exemptions: If you hire a subcontractor who claims an exemption, verify it's valid before they start work. If it's invalid, you're liable.
When Coverage Is Better Than an Exemption
While an exemption saves you the cost of workers' comp premiums on your own wages, it also means you have no coverage if you're injured on the job. For many Florida contractors — especially those doing physically demanding work like roofing, framing, or concrete — this is a significant personal risk.
Consider: A serious injury that keeps you out of work for 6 months could cost $50,000–$200,000 in medical bills and lost income. Workers' comp would cover those costs. An exemption leaves you personally responsible.
Our PEO program offers affordable coverage that includes you as an officer. In many cases, the cost of including yourself in coverage is less than the financial risk of going without it.