A Florida workers’ compensation exemption lets a qualifying corporate officer or LLC member who owns at least 10% of the business legally opt out of carrying workers’ comp coverage on themselves. It is filed through the state’s Division of Workers’ Compensation, covers the individual rather than the company, and never removes your obligation to cover employees. The exemption expires every two years and must be renewed.
“Filing an exemption” is one of the most misunderstood moves in Florida workers’ comp. Owners hear they can opt out and assume the business is off the hook. It isn’t. An exemption is narrow, carries real trade-offs, and is far stricter for construction than for everyone else. Here’s how it actually works.
What is a workers’ comp exemption?
An exemption is a state-approved election that removes a qualifying owner or officer from the workers’ compensation coverage requirement. The exempt person agrees, in effect, that they will not collect workers’ comp benefits for their own job-related injuries. In exchange, their wages are not counted when your premium is calculated, which lowers the policy cost.
The key word is themselves. An exemption opts out the individual who files it. It does not opt out your business, and it does not touch your duty to cover employees. If you have staff on payroll, your coverage obligation for them stands no matter how many exemptions the owners hold.
Who is required to carry coverage in the first place?
Before you think about exemptions, know Florida’s coverage thresholds, because they’re industry-based and unusually strict for construction:
| Industry | Coverage required when you have… |
|---|---|
| Construction | One or more employees (owners who are officers/LLC members count) |
| Non-construction | Four or more employees (part-time included) |
| Agriculture | Six or more regular employees, or 12+ seasonal workers (working more than 30 days in a season or 45 days total in a calendar year) |
Part-time employees count the same as full-time toward these thresholds. And note a Florida quirk that catches many owners off guard: trades like landscaping are classified as construction for workers’ comp purposes, which means the strict one-employee rule applies. If you’re unsure where you land, our guide to Florida workers’ comp rules for employers walks through the classifications.
Who qualifies for an exemption in Florida?
Eligibility hinges on your entity type and, above all, your industry:
Construction industry (strict)
- Only corporate officers or LLC members who own at least 10% of the company may file.
- A maximum of three officers per company can be exempt.
- The construction certificate of exemption carries a $50 fee and must be renewed every two years, including a compliance tutorial.
- Sole proprietors and partners in construction are generally treated as employees and cannot simply opt out the way non-construction owners can.
Non-construction industry (more permissive)
- Corporate officers and qualifying LLC members can elect exemption, generally without the construction-style fee.
- Sole proprietors and partners in non-construction work are not considered employees by default, so they typically aren’t required to cover themselves unless they choose to be included.
One more detail that surprises owners: if you stay included on the policy rather than exempt, Florida applies an officer minimum payroll when calculating your premium, in 2026 that’s $33,800 for construction and $67,600 for non-construction, even if you actually paid yourself less. Filing an exemption removes that minimum from your premium base.
How to file a workers’ comp exemption in Florida
- Confirm eligibility. Verify your entity type, ownership percentage (at least 10%), and industry classification.
- Make sure your business is active. The corporation or LLC must be registered and active with the Florida Department of State.
- Gather your details. You’ll need your business and FEIN information, ownership details, and your classification.
- File online with the Division of Workers’ Compensation. Exemptions are submitted, renewed, and revoked through the state’s online exemption portal (myfloridacfo.com/division/wc). Construction applicants pay the $50 fee and complete the required tutorial.
- Keep your certificate and track the renewal. You’ll receive a Certificate of Election to be Exempt. General contractors and clients may ask to see it, and because it expires every two years, set a reminder so it never lapses.
The risks of filing an exemption
An exemption lowers your premium, but it removes your own safety net. If you’re exempt and you get hurt on the job, workers’ comp will not pay your medical bills or replace your lost income, that cost falls on you personally. For an owner who does physical, high-risk work, a roofer, framer, or concrete finisher, that is a serious gamble, especially given how high injury rates run in those trades.
There’s also a compliance trap. Because an exemption never covers employees, owners who believe their exemption “covers the business” can end up illegally uninsured the moment they hire. Florida enforces aggressively: the Division runs unannounced job-site sweeps, and operating without required coverage can trigger a stop-work order plus a penalty of double the premium you avoided (minimum $1,000), with repeat violations escalating to criminal charges. If you have workers and no policy, an exemption won’t save you, you need coverage. Our explainer on whether a business with no employees needs workers’ comp covers where that line falls.
Frequently Asked Questions
Does a workers’ comp exemption cover my employees?
No. An exemption removes only the individual owner or officer who files it. If you have employees, you must still carry workers’ comp for them under Florida’s thresholds, and their payroll is added to your policy at audit.
How much does a workers’ comp exemption cost in Florida?
Construction-industry certificates of exemption carry a $50 fee and renew every two years. Non-construction exemptions are generally filed without that fee. Always confirm current costs with the Florida Division of Workers’ Compensation.
How long does a Florida exemption last?
Exemptions expire two years from the date of issuance and must be renewed by completing the application process again. It’s the business owner’s responsibility to keep it active.
Who is eligible to file an exemption?
Corporate officers and LLC members who own at least 10% of the company. In construction, no more than three officers per company may be exempt. Employees are never eligible.
What happens if I get injured while exempt?
You would not be eligible for workers’ comp benefits for that injury. Your medical costs and lost wages would not be covered by a workers’ comp policy, so many owners who do hands-on work choose to stay covered.
This article is for general informational purposes only and does not constitute legal, financial, or insurance advice. Workers’ compensation rules, fees, ownership thresholds, and exemption requirements are set by the State of Florida and change over time. Always verify current requirements with the Florida Division of Workers’ Compensation or a licensed professional before making coverage decisions.
