By Adrian Middleton, Sword & Shield, PLLC · Updated Monday, October 19, 2026
What the section does
Section 440.105 lists the criminal offenses under the workers' compensation law. For employers, the one that matters is subsection (4)(a)3: it is unlawful for any employer to knowingly fail to secure the payment of compensation when required. That failure is classified as insurance fraud and graded by the amount involved under subsection (4)(f). The same section covers violating a stop-work order, false statements, and coercing exemptions.
The offenses an employer can commit
| Provision | Conduct | Grade |
|---|---|---|
| (4)(a)3 | Knowingly failing to secure workers' compensation coverage | Felony, graded by amount under (4)(f) |
| (4)(b)8 | Knowingly conducting business in violation of a stop-work order | Felony, graded by amount |
| (4)(b) | Knowingly making false, fraudulent or misleading statements or omissions to obtain or deny coverage or benefits, or in support of a claim | Felony, graded by amount |
| (2)(a)1 | Coercing or attempting to coerce an employee to obtain an exemption as a condition of employment | First-degree misdemeanor |
| s. 440.05(4) | False or misleading information on a Notice of Election to be Exempt | Third-degree felony |
| s. 440.10(1)(g) | Insuring Florida employees under a non-Florida policy without a Florida endorsement, to avoid Florida rates | Second-degree felony |
The felony grades
Subsection (4)(f) grades the offense by the monetary value of the fraud, which in a failure-to-secure case the State Attorney measures by the penalty calculation or the premium avoided:
| Amount involved | Degree | Maximum prison term under Chapter 775 |
|---|---|---|
| Less than $20,000 | Third-degree felony | 5 years |
| $20,000 or more but less than $100,000 | Second-degree felony | 15 years |
| $100,000 or more | First-degree felony | 30 years |
A roofing crew of five imputed for a year under section 440.107(7)(e) is over half a million dollars of payroll before the rate is applied. The amounts that grade the felony arrive quickly in construction. See criminal exposure for how the number is built.
The word 'knowingly'
The element the State Attorney must prove is that the employer knew coverage was required and failed to secure it. Section 440.107(7)(d)2 helps them: a second violation within five years is deemed knowing. So do the employer's own words. The investigator's field interview questions, about who works for you, how long, how they are paid, and whether you knew about the coverage requirement, go directly to this element, and nothing in Chapter 440 requires the employer to answer them.
Why the numbers matter
The first-degree felony threshold is $100,000. Under the imputation formula, one uninsured worker over a 24-month lookback is $211,841 of imputed payroll. The grade is not about how big the company is.
How a referral happens
Subsection (1)(a) directs anyone with knowledge of a violation to report it to the Bureau of Workers' Compensation Fraud in the Division of Investigative and Forensic Services, and requires the State Attorney to explain in writing, within 60 days, any decision not to prosecute a referral. Bureau of Compliance investigators refer cases down the hall. The patterns that get referred are cash payroll, check-cashing, a second order within five years, false exemption applications, and statements to the investigator that establish knowledge.
Investigator asking about intent? That is the felony case. Call before you answer.
(850) 766-6825Criminal referral defenseRead the official text of s. 440.105, Fla. Stat. This page explains the statute; it does not reproduce it. Quote the statute.
Questions
Is not having workers' comp a felony in Florida?+
Knowingly failing to secure required coverage is insurance fraud under section 440.105(4)(a)3, a felony graded by amount under (4)(f): third degree under $20,000, second degree from $20,000 to under $100,000, first degree at $100,000 or more.
Is working during a stop-work order a crime?+
Knowingly conducting business in violation of the order is a felony under section 440.105(4)(b)8, in addition to the $1,000 per day civil penalty under section 440.107(7)(c).
Do I have to answer the investigator's questions?+
No statute requires it. Section 440.107(3) lets the Department administer oaths and issue subpoenas, which is a separate, formal process. A jobsite interview is voluntary, and the answers are the evidence of knowledge under section 440.105.