Many states require businesses to purchase workers’ compensation insurance as soon as they hire their first employee. However, laws vary by state and there are some exemptions.
Requirements and Exemptions
You need to make sure you are in compliance with the workers’ compensation laws in all of the states your business operates in. Florida law requires your business to purchase workers’ compensation insurance Maitland FL, if your business has more than four employees. Coverage is required for part-time employees, but not for independent contractors.
Sole proprietors and partners are excluded from the requirement, but can still choose to purchase coverage. Construction businesses must purchase coverage for all employees and contractors, even if they only have one employee. However, construction companies can exempt up to three corporate officers, if those officers own at least 10% of the company. They must also confirm that any subcontractors they employ are providing coverage for their own employees. Agriculture companies are required to purchase coverage if they have six or more year-round employees or 12 or more seasonal workers if those workers are employed for more than 30 days.
Self-employed Workers
Florida mandates that self-employed workers in the construction industry purchase workers’ compensation coverage. Most other self-employed people are not required to purchase coverage unless they employ four or more employees, but it may be a good idea to purchase coverage for some individuals.
Penalties for Non-compliance
Businesses that do not comply with Florida workers’ compensation laws may be issued a stop-work order and be required to pay a penalty. The penalty is usually double the amount the employer would have paid in premiums for the previous two-years. Failure to comply with a stop-work order can result in criminal charges.
To avoid potential liability and penalties, it is important to comply with Florida workers’ compensation laws. Your insurance professional should be able to help you ensure you are compliant.