Workers' comp exemptions: exempt versus non-exempt status

By Adrian Middleton, Sword & Shield, PLLC · Updated Friday, October 9, 2026

Who can be exempt

• Corporate officers who perform services for the corporation (s. 440.02(18)(b)1).
• LLC members owning at least 10 percent, who are treated as officers (s. 440.02(11)).
• In the construction industry, no more than three officers of a corporation or of any group of affiliated corporations, each a shareholder owning at least 10 percent and listed as an officer with the Division of Corporations (s. 440.02(18)(b)2). 'Affiliated' includes entities under common control, and shared equipment or income is prima facie evidence of affiliation.
• Non-construction officers have no numeric limit or ownership threshold, but must still be listed officers on Sunbiz (s. 440.05(10)).
• Sole proprietors and partners outside construction are not employees unless they elect in; in construction they are employees and cannot exempt out except as officers of an incorporated entity.

How to file

Section 440.05(3) requires the Notice of Election to be Exempt to be filed electronically with the Division of Workers' Compensation. It must list the applicant's name, date of birth, driver license or Florida ID number, every Chapter 489 license held, the corporation's Sunbiz registration number, the ownership percentage, and the FEIN of each employer. The applicant must certify that any employees of the company are covered and that he or she has completed the Division's online coverage and compliance tutorial. Construction exemptions carry a $50 fee (s. 440.05(8)). The certificate is effective when issued or 30 days after receipt, whichever is first, and is valid for two years (s. 440.05(5)-(6)).

File at the Division's exemption portal: myfloridacfo.com/division/wc/employer/exemptions. Verify any certificate on the Division's proof-of-coverage search.

Why exemptions fail

• Expired. Two years goes by fast and the renewal notice went to an old email.
• Wrong entity. The certificate names Smith Roofing, Inc.; the checks are written by Smith Roofing LLC. A new certificate is required for each corporation (s. 440.05(3)).
• Not an officer on Sunbiz, or the annual report lapsed and the entity was administratively dissolved.
• Less than 10 percent ownership, or a fourth construction officer.
• The 'subcontractor' with an exemption has employees of his own who are uninsured, which makes the contractor liable for them under section 440.10(1)(b).
• False information on the application, which is a third-degree felony under section 440.05(4) and voids the exemption.

Exemptions do not cover employees

An exemption removes one officer from the definition of employee. It does nothing for the officer's workers. A three-officer roofing company with exemptions for all three and one helper on the roof is an uninsured employer for that helper, and the order will be served.

Coercing exemptions

Section 440.105(2)(a)1 makes it a first-degree misdemeanor for an employer to coerce an employee to obtain an exemption as a condition of employment. 'Everyone on my crew is an officer of his own LLC' is a pattern investigators recognize, and the exemptions behind it do not survive scrutiny if the 'officers' are, in fact, hourly workers.

We file exemptions

Sword & Shield prepares and files Notices of Election to be Exempt for qualifying officers and members, confirms eligibility against Sunbiz and the three-officer limit, and calendars renewals. See the exemption filing service.

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