By Adrian Middleton, Sword & Shield, PLLC · Updated Friday, October 9, 2026
The thresholds
| Employer | Coverage required when | Statute |
|---|---|---|
| Construction industry | One or more employees, including non-exempt officers | s. 440.02(20)(b)2; s. 440.10(1)(a) |
| Non-construction | Four or more employees | s. 440.02(20)(b)2 |
| Agricultural (bona fide farm) | More than 5 regular employees, or 12 or more seasonal workers for more than 30 days (or more than 45 days in a year) | s. 440.02(20)(c)2 |
| State and local government | Always | s. 440.02(20)(b)1 |
What 'construction industry' means
Section 440.02(10) defines it as for-profit activities involving any building, clearing, filling, excavation, or substantial improvement in the size or use of any structure or the appearance of any land. The Division's Rule 69L-6.021 lists the NCCI classification codes it treats as construction. Painting, landscaping, debris removal and fence installation are construction under the rule even though many owners do not think of them that way. A homeowner building on their own premises is excluded if the property is not for sale, resale or lease within a year.
Who counts as an employee
Section 440.02(18) is broad: any person who receives remuneration for work under any contract for hire, express or implied, oral or written, whether lawfully or unlawfully employed, including aliens and minors. In construction it specifically includes sole proprietors and partners engaged in construction, independent contractors working in construction, and anyone paid by a construction contractor as a subcontractor unless that subcontractor has a valid exemption or its own coverage. The only way a construction worker is not an employee is an exemption certificate or a policy.
Officers and LLC members
A corporate officer who performs services for pay is an employee under section 440.02(18)(b) unless an election to be exempt is on file. An LLC member owning at least 10 percent is treated as an officer under section 440.02(11). Construction companies may exempt no more than three officers, each owning at least 10 percent and listed on Sunbiz. See exemptions.
Out-of-state employers
Section 440.10(1)(g) requires any employer with employees engaged in work in Florida to obtain a Florida policy or endorsement using Florida class codes, rates, rules and manuals. Construction employees performing new construction or alterations in Florida are assigned to Florida even if they go home across the state line every night. A policy from Georgia or Alabama without a Florida endorsement is no coverage at all for penalty purposes, and the failure is a second-degree felony.
Non-construction businesses that serve construction
A supplier, a fabricator working in its own shop, a trucking company, a cleaning service or a staffing firm is a non-construction employer if its work falls under non-construction class codes, and it needs coverage only at four or more employees. Its workers are its employees, not the contractor's, if it is a bona fide separate business. That is the principle behind removing vendors, fabricators and small non-construction labor providers from a penalty calculation, and it is one the Department's auditors do not apply unless you make them.
Not sure which threshold applies to you? Ask before an investigator decides for you.
(850) 766-6825Free consultationQuestions
I only have part-time workers. Do they count?+
Yes. The thresholds count employees, not full-time equivalents. A construction company with one part-time helper needs coverage; a non-construction company with four part-time workers needs coverage.
Do family members count?+
Yes, if they are paid for work. There is no family exception in Chapter 440, apart from domestic servants in private homes.
I pay everyone on a 1099. Do I need coverage?+
In construction, yes: a 1099 worker without his own exemption or policy is your employee under section 440.02(18)(c). Outside construction, only if the worker fails the independent contractor test in section 440.02(18)(d)1, and the burden of proving independent contractor status is on the person claiming it.