By Adrian Middleton, Sword & Shield, PLLC · Updated Monday, October 19, 2026
The short answer
A person is exempt from Florida workers' compensation only if all of the following are true: they are an officer of a corporation or a member of a limited liability company holding at least 10 percent of the company; they are listed in that role on Sunbiz; they filed a Notice of Election to be Exempt with the Division of Workers' Compensation; and the Division issued a Certificate of Election to be Exempt that has not expired or been revoked. The certificate covers that one person, for that one company. It covers nobody else.
Everyone the company pays who does not hold a certificate is an employee for workers' compensation purposes, whether they are paid by W-2, by 1099, by check, or in cash, and whether or not anyone calls them a subcontractor. In the construction industry that is written directly into section 440.02(18)(c), Florida Statutes.
Who can elect to be exempt
| Person | Can elect exemption? | Conditions | Source |
|---|---|---|---|
| Corporate officer (Inc., Corp., P.A.) | Yes | Listed as an officer on Sunbiz; in construction, one of no more than three officers, each owning at least 10% | s. 440.02(18)(b); s. 440.05(10) |
| LLC member | Yes, treated as an officer | Owns at least 10% of the LLC; listed on Sunbiz; same construction limits | s. 440.02(11) |
| Sole proprietor, non-construction | Not an employee unless they elect in | No certificate needed; the owner is simply not an employee of themselves | s. 440.02(18); s. 440.05(2) |
| Sole proprietor, construction | No | A construction sole proprietor is an employee of any contractor they work for unless they carry their own policy; the only route to exemption is to incorporate and file as an officer | s. 440.02(18)(c) |
| Partner, non-construction | Not an employee unless they elect in | Same as non-construction sole proprietor | s. 440.02(18); s. 440.05(2) |
| Partner, construction | No | Same as construction sole proprietor | s. 440.02(18)(c) |
| Employee, any industry | Never | An employee cannot be made exempt, and coercing a worker to obtain an exemption is a first-degree misdemeanor | s. 440.105(2)(a)1 |
Construction versus non-construction
The industry decides two things: whether the company needs coverage at all, and how many officers can be exempt.
- Construction industry employers must carry coverage with one or more employees. There is no small-employer exception. 'Construction industry' means for-profit activities involving any building, clearing, filling, excavation, or substantial improvement in the size or use of any structure or land (s. 440.02(10)). Roofing, framing, drywall, concrete, painting, electrical, plumbing, HVAC, landscaping that involves grading or hardscape, and general contracting are all in.
- Non-construction employers must carry coverage with four or more employees, counting part-time workers and non-exempt officers (s. 440.02(20)(b)2). Agricultural employers have their own thresholds: six or more regular employees, or twelve or more seasonal workers who work more than 30 days in a season and more than 45 days a year (s. 440.02(20)(c)2).
- In construction, no more than three officers of a corporation, or of any group of affiliated corporations, may be exempt, and each must own at least 10 percent (s. 440.02(18)(b)2). Companies under common control, or that share equipment or income, are affiliated.
- Outside construction there is no numeric limit on exempt officers, but each must be a listed officer on Sunbiz (s. 440.05(10)).
The line that gets crossed
A corporation whose only workers are three exempt officers needs no policy. The day it pays a fourth person to swing a hammer, it is an uninsured construction employer with one employee, and that is enough for a stop-work order under section 440.107(7)(a).
Who is never exempt
- Anyone the company pays who is not a certified officer or member, including family members, helpers, day labor, and 'subcontractors' who are individuals without their own policy or certificate.
- An officer whose certificate has expired (two years from issuance, s. 440.05(6)).
- An officer whose certificate names a different company than the one paying them (s. 440.05(3), (11)).
- An officer who is not listed on Sunbiz, or whose company was administratively dissolved for a lapsed annual report (s. 440.05(10)).
- A fourth construction officer, or any construction officer with less than 10 percent ownership.
- An officer whose certificate was revoked, including for an affiliated person's unpaid stop-work order penalty (s. 440.05(12), (14)).
What an exemption gives up
An exempt officer is not entitled to workers' compensation benefits (s. 440.05(13)). If the exempt owner of a roofing company falls, there is no claim, no medical, no indemnity. Health insurance may or may not cover a work injury. Many owners who qualify choose to stay on the policy for that reason; the exemption is a choice, not a requirement.
How the Division checks
Investigators verify exemptions in the Division's database by name and by company, on site, from a phone. An expired or mismatched certificate shows up in seconds. If the officer cannot be matched to a valid certificate for the entity that is paying them, every dollar paid to that officer during the penalty period goes on the worksheet as uninsured payroll, rated at the class code for the work they were doing. See how exemptions fail during a stop-work order.
Not sure whether you qualify? Run the free eligibility check, or have us file the exemption correctly.
(850) 766-6825Check eligibilityQuestions
Do I need workers' comp if I am the only employee of my LLC in Florida?+
If you are in construction, yes, unless you hold a current exemption certificate as a member owning at least 10 percent, and any contractor who hires you will require one or a policy. Outside construction, a single-member LLC with no employees is below the four-employee threshold and needs no coverage, though many customers require it by contract.
Does a sole proprietor need workers' comp in Florida?+
Outside construction, a sole proprietor is not an employee of themselves and needs coverage only on reaching four employees. In construction, a sole proprietor working for a contractor is that contractor's employee under section 440.02(18)(c) unless they carry their own policy. Sole proprietors cannot file an exemption; they would need to incorporate first.
Can my employees be made exempt if I make them officers?+
Only if they are genuine officers listed on Sunbiz with at least 10 percent ownership, no more than three in construction, and they personally file. Making hourly workers 'officers' to avoid coverage is a pattern investigators recognize, and coercing an employee to obtain an exemption is a first-degree misdemeanor under section 440.105(2)(a)1. False information on the notice is a third-degree felony under section 440.05(4).
Is a Florida workers' comp exemption the same as a DBPR license?+
No. The certificate itself says it is not a license from the Department of Business and Professional Regulation. A roofing exemption does not let anyone do roofing work without a Chapter 489 license.
Does an exemption from another state work in Florida?+
No. The exemption is a Florida certificate issued by the Florida Division of Workers' Compensation for a company registered with the Florida Division of Corporations. Out-of-state coverage must be endorsed for Florida under section 440.38(7).