Florida Workers' Comp Exemption: Who Qualifies, How to Apply, What It Costs

A Florida workers’ comp exemption is a state certificate that lets a corporate officer, or an LLC member who owns at least 10 percent of the company, opt themselves out of the workers’ compensation law. You file a Notice of Election to be Exempt (form DWC-250) online with the Division of Workers’ Compensation, and the certificate (form DWC-252) lasts two years. It exempts only the person named on it, not your employees.

The short version:

Apply through the Division’s online exemption system at apps.fldfs.com/bocexempt. There is no paper application, and it is not filed on Sunbiz.
Only officers or members listed in the Division of Corporations record (the one you see on Sunbiz) can apply, and the company must be active.
Outside construction, any listed officer can elect the exemption, and there is no fee.
In construction, each exempt officer must own at least 10 percent of the company, no more than three can be exempt, and each application or renewal costs $50 under section 440.05(8) of the Florida Statutes.
An exempt officer cannot collect workers’ comp benefits for their own injury.
Contractors can verify a subcontractor’s exemption in the Division’s online data portal.

This is general information, not legal or insurance advice. Florida’s rules change, so confirm the details with the Division of Workers’ Compensation before you file or rely on a certificate.

A construction worker silhouetted on scaffolding against a grey sky

What the exemption is

In Florida, a corporate officer paid to work in the state counts as an employee for workers’ comp. Section 440.02(18)(b) says “employee” includes “any person who is an officer of a corporation.” An officer who files a notice of election to be exempt steps outside that definition: once it takes effect, the officer “is not an employee for any reason under this chapter” until they revoke it.

That means:

No benefits for you. An exempt officer “may not recover benefits or compensation under this chapter,” according to section 440.05(13). Check whether your health insurance covers a work injury before you rely on it; some health plans exclude injuries that happen at work.
No premium for you. The same subsection bars insurers from counting a valid exempt officer as an employee when setting premium.

For the basics, see our guide to workers’ compensation insurance for small business.

Who is exempt from workers’ comp in Florida?

“Exempt” means two different things in Florida, and searches mix them up. One is a business that is below the coverage threshold and does not have to buy a policy at all. The other is an individual officer who holds a certificate of exemption. The thresholds come from section 440.02(20) and the employee definition from section 440.02(18):

Situation	Must the business carry coverage?
Non-construction business with fewer than four employees	No. Coverage applies once “four or more employees are employed by the same employer.” Officers who have not filed an exemption count toward the four.
Non-construction business with four or more employees	Yes.
Construction business with any employee at all	Yes. Coverage applies where “one or more employees” are employed, and an officer or LLC member who has not filed an exemption counts as that one employee.
Construction business whose only workers are exempt officers	Generally no, until it hires anyone.
Sole proprietor or partner outside construction	Not an employee unless they opt in by filing a Notice of Election of Coverage (form DWC-251).
Sole proprietor in construction	Counts as an employee under section 440.02(18)(c), and cannot use the officer exemption.
Farm employing five or fewer regular employees and fewer than 12 seasonal workers	Exempt from the agricultural coverage requirement, as long as the seasonal work is “completed in less than 30 days” and does not exceed 45 days in the same calendar year.

The rest of this guide is about the second meaning: the certificate an officer or LLC member files for.

Who qualifies: construction vs other industries

The rules depend on whether your company is in the construction industry. Florida defines that as “for-profit activities involving any building, clearing, filling, excavation, or substantial improvement” to a structure or land (section 440.02(10)). The Division classifies work using Rule 69L-6.021; if you are not sure which side you fall on, it points employers to the National Council on Compensation Insurance at (800) 622-4123.

Requirements from section 440.02, section 440.05, Rule 69L-6.012 of the Florida Administrative Code, and the Division’s construction and non-construction exemption pages:

	Non-construction	Construction
Who can elect	Any officer of a corporation	Officers who are shareholders
Ownership	No minimum for corporate officers	At least 10 percent of the stock each, attested on the application
How many officers	No limit in the statute	No more than three per corporation, LLC, or group of affiliated companies
LLC members	Count as officers if they own at least 10 percent	Count as officers if they own at least 10 percent
Listed on Division of Corporations records	Required, and the company must be active	Required, and the company must be active
Driver license or Florida ID	Required; valid if expired no more than 30 days	Required; valid if expired no more than 30 days
Fee	None	$50 per application or renewal
Form	DWC-250, filed online	DWC-250, filed online

Also:

LLC members. The statute treats “a member owning at least 10 percent of a limited liability company” as an officer (section 440.02(11)).
Active company only. The rule limits valid certificates to officers of “non-dissolved or active” corporations and LLCs. An administratively dissolved company on Sunbiz is the most common reason an application fails; reinstate it first.
One company per certificate. Section 440.05(3) says a new certificate “must be obtained each time the person is employed by a new or different corporation” that is not listed on the current one.
Unpaid penalties block you. An officer affiliated with a business that is behind on a stop-work order penalty “is ineligible for an election of exemption” (section 440.05(14)). The Division also turns away applicants linked to an active stop-work order or a working-in-violation finding, and anyone whose earlier payment bounced.

Sole proprietors are handled differently. Outside construction, they are not employees unless they choose to be. In construction, the statute lists “a sole proprietor who engages in the construction industry” as an employee (section 440.02(18)(c)), and the officer exemption is not available to them. The usual route is to form a corporation or LLC and then file as an officer or member.

What the exemption does not do

The certificate covers one person. Section 440.05(11) says it applies “only to the corporate officer named on the notice of election to be exempt.” Everyone else on your payroll is still an employee.

Officers who have not filed an exemption count as employees; exempt officers do not. A construction company whose only workers are exempt owners may not need a policy, but hiring one employee changes that, and so does bringing a helper onto a job for a day.

An exemption is not an insurance policy either. If a general contractor’s contract asks for a certificate of insurance, an exemption certificate is the Florida-recognised substitute for the owner’s own coverage, but it cannot carry a waiver of subrogation or additional-insured wording, and it does nothing for anyone you hire. Some owners buy a minimum-premium policy instead to satisfy a contract; our guide to workers’ comp ghost policies explains what that does and does not cover.

How to apply

Applications are filed online only. Rule 69L-6.012 says the notice “is filed electronically through the DWC Notice of Election to be Exempt System.” The Division’s exemption page links to the system from its construction and non-construction pages, and the system itself is at apps.fldfs.com/bocexempt. It lets you apply, renew, change a pending application, and print the certificate.

Check Sunbiz first. Make sure the company is active and you are listed as an officer, or as a member, in its record with the Division of Corporations. Section 440.05(10) requires it, so update the record first if you are missing, and use exactly the name that appears there. Sunbiz is where the record lives; it is not where the exemption is filed.
Have your details ready. The notice asks for your date of birth, a valid driver license or Florida ID number, any contractor licenses you hold under chapter 489, the company’s Division of Corporations document number, your percentage of ownership, and the company’s federal employer identification number (section 440.05(3)). The rule treats a license as valid if it has not been expired for more than 30 days when you submit.
Complete the tutorial. You must certify that you have “completed an online workers’ compensation coverage and compliance tutorial developed by the department.” The system directs you to it.
Attest and sign it yourself. You certify under penalty of perjury that you own the required share, that any employees of the company are covered, and that you understand you will not be entitled to benefits. The applicant must personally sign; the Division warns that anyone else signing “may be guilty of a felony of the third degree.”
Pay the fee if you are in construction. The fee is $50 per application or renewal (section 440.05(8)), paid by card or electronic check. Rule 69L-6.012 adds a convenience fee for electronic payment, and a bounced payment gets the certificate revoked.
Print the certificate. Once the Division issues it, the certificate (form DWC-252) is available in the same system. Under section 440.05(5), the notice takes effect when the Division issues it or 30 days after the Division receives it, whichever comes first.
Answer any follow-up. Under the rule, missing information not supplied within 90 days of a deficiency notice means denial.

The notice warns that knowingly filing false or misleading information is a third-degree felony (section 440.05(4)).

For help with the system, the Division lists (850) 413-1609 and wc_exemption@myfloridacfo.com on its exemption pages.

How long it lasts, and how to renew

A certificate “is valid for 2 years after the effective date stated thereon” (section 440.05(6)) and expires at midnight on that date. It does not renew itself. The Division must send an expiration notice at least 60 days before the certificate runs out, to the address or email on file, and you renew through the same online system, paying the $50 again if you are in construction.

If you let it lapse, you are an employee again from the expiry date until a new certificate takes effect, which matters to any contractor relying on your exemption. You can also revoke your own exemption before it expires by filing a revocation with the Division; the Division can revoke it for a bounced payment or false information.

How to check someone else’s exemption

If you hire a subcontractor, their exemption matters to you. Section 440.10(1)(b) makes a contractor that sublets work liable for compensation to a subcontractor’s employees unless the subcontractor has its own coverage. A subcontractor whose officer is exempt “shall provide a copy of his or her certificate of exemption to the contractor.”

Rule 69L-6.032 lists two ways to document an officer’s exemption: a copy of the certificate from the subcontractor, or a screen print from the Division’s exemption search. For a subcontractor with a policy, the same rule points to the Proof of Coverage database. Check that the person on your site is the person named on the certificate, that it has not expired, and that the subcontractor has no more than three exempt officers; an exempt subcontractor with employees still needs a policy for them. Collect proof the same way you would for general liability insurance for contractors.

What happens if you work without coverage

If the Division finds that an employer required to carry coverage has not, section 440.107(7) says it “shall issue a stop-work order within 72 hours.” The penalties in that section:

Back premium penalty: 2 times what the employer would have paid in premium over the preceding 12 months, or $1,000, whichever is greater. The lookback is 24 months for employers with a prior stop-work order or penalty, or who concealed payroll.
Working through the order: $1,000 per day for each day the business operates in violation of a stop-work order.

A stop-work order also makes every affiliated officer ineligible for a new exemption until the penalty is paid, so a lapsed certificate can become a company-wide problem.

Frequently asked questions

Does a workers’ comp exemption cover my employees?

No. It applies only to the officer named on the certificate. Employees need a workers’ comp policy once your business meets the threshold: four employees outside construction, one in construction.

How much does a Florida workers’ comp exemption cost?

Construction certificates cost $50 per application or renewal, plus an electronic payment convenience fee, under section 440.05(8) and Rule 69L-6.012. Non-construction exemptions have no state fee. Anything above that is a third party’s service charge, not the Division’s.

Is the exemption filed on Sunbiz?

No. Sunbiz holds the Division of Corporations record that the Division of Workers’ Compensation checks you against. The exemption itself is filed in the Division’s own system at apps.fldfs.com/bocexempt.

How long does approval take?

The statute gives the Division up to 30 days: a notice takes effect when the Division issues the certificate or 30 days after it receives the notice, whichever comes first (section 440.05(5)). Applications filed online with a clean Sunbiz record and a successful payment are usually issued through the system much sooner than that; print the certificate once it shows as issued rather than treating the payment receipt as proof.

Can a sole proprietor in construction get an exemption?

No. The certificate is for corporate officers, including LLC members who own at least 10 percent. Florida’s definition of employee lists construction sole proprietors, so a sole proprietor in construction either carries coverage or forms a corporation or LLC and files as an officer or member.

Do I need a new exemption if I start another company?

Yes. A new certificate is required each time you work for a corporation or LLC that is not listed on your current one.

How do I renew my exemption?

Renew through the same online system before the two-year term ends; the construction fee applies to renewals too. The Division must notify you at least 60 days before your certificate expires, and there is no automatic renewal.

Where to go from here

Check your Sunbiz record, decide whether giving up your own workers’ comp benefits makes sense, and then file through the Division’s online system. If you have employees, price a policy for them; our guide to workers’ compensation insurance for small business explains how premiums are set, and the workers’ comp cost calculator gives a rough figure from payroll. Other states handle this differently: Tennessee runs an exemption registry for construction owners, and New York issues a CE-200 certificate permit by permit. For your other policies, see what LLC insurance costs and whether your work vehicles need commercial auto insurance. Arhox is an independent publication, not an insurer, broker, or law firm; our editorial policy and disclaimer explain how these guides are prepared.