By Adrian Middleton, Sword & Shield, PLLC · Updated Friday, October 9, 2026
Class codes the Division applies to general contractors
| Code | Description | Note |
|---|---|---|
| 5606 | Project manager / superintendent | Only for supervisors who are never on the tools |
| 5645 | Carpentry, residential | Rated per $100 of payroll at the approved Florida rate |
| 8810 | Clerical | Only for office staff who never visit a site |
The rate for each code is set in the annual NCCI Florida filing and applied per $100 of payroll. The penalty is two times that premium over the lookback period. Moving payroll from a high-rated field code to the correct code, or to a standard exception, is one of the most productive corrections in a penalty worksheet, and it requires records that show who did what.
Where general contractors go wrong
- Under section 440.10(1)(b), the general is the employer of every worker of an uninsured subcontractor; the sub gets the order and the general gets the records request.
- Missing or expired certificates of insurance for subs are the single most common failure; Rule 69L-6.032 requires the evidence to be collected before work starts.
- Superintendents coded 5606 are cheap; superintendents who swing a hammer are coded with the trade.
Licensing
Certified general (CGC), building (CBC) and residential (CRC) contractors are licensed under Chapter 489 Part I; a stop-work order against the company triggers the mandatory DBPR referral against the qualifier.
The rule that decides most of these cases
Every dollar paid to a worker in the construction industry is uninsured payroll unless that worker held a valid exemption or was covered by a policy on the date of payment. A 1099, a contract, or a handshake agreement that someone is a subcontractor changes nothing (s. 440.02(18)(c)).
What to do if you were served
Stop all work at every site. Do not give the investigator records or a statement. Calendar 21 days from the order and 21 days from the records request. Get coverage. Then audit the records before anything is produced, because for many general contractors the choice between the records penalty and the imputed penalty is worth more than any later argument. The do's and don'ts and the penalty audit pages explain each step; the free calculator runs both numbers.
Questions
Are my 1099 general contractors really my employees?+
In the construction industry, yes, unless each holds a valid certificate of election to be exempt or is covered by a policy. Section 440.02(18)(c) makes independent contractors and subcontractors in construction employees of the contractor that pays them. The $5,000 per-worker penalty in section 440.107(7)(f) applies if you told the Department or your carrier they were independent contractors.
Will the Division tell DBPR?+
Yes. Section 440.107(14) requires the Department to immediately notify DBPR when a certified or registered contractor fails to secure coverage. That becomes a separate disciplinary case against the qualifier's license.
Can the class code be changed after the penalty is calculated?+
Yes, through records showing the actual work performed and, if needed, a petition under Chapter 120. Amended Orders of Penalty Assessment correcting class codes are common when the evidence supports it.