What Is the Penalty for Not Having Workers’ Compensation in Florida?

Any employer conducting work in the state of Florida is required to provide workers’ compensation coverage for their employees.

The exact employer coverage requirements depend on the industry type, the number of employees, and the organization, but it is still mandatory insurance coverage you must have.

Is Anyone Exempt from Workers’ Compensation?

If an employer wants to apply for a workers’ compensation exemption, they must submit a Notice of Election to be exempt online through the Florida Division of Workers’ Compensation. It is a straightforward process once you know you meet all the qualifications.

There are different qualifications for construction and non-construction industries. You can visit myFloridacfo.com for a more detailed look into what is required of you as a business owner.

For example, the corporation must be registered and listed as active with the Florida Department of State, Division of Corporations. The applicant must also be listed as an officer of the corporation and cannot be affiliated with an Active Stop Work Order or Working in Violation order.

Penalties for Not Having Coverage

You may receive fines and stop-work orders if you do not have workers’ compensation in Florida. State investigators perform job site inspections, and during these inspections, they are allowed to speak with the employees. If the investigator determines that an employer is violating the law regarding workers’ compensation, they can give them high fines.

There is typically a minimum fee of $1,000 or double what the employer would have paid in premiums for the time they were without this insurance coverage. A $5,000 fee is also assessed for each worker who was declared falsely as an independent contractor.

Stop-Work Orders

Once a fine is issued, they will usually also issue a stop-work order. This will stay in effect until the business complies with the law. The business must stop all operations until compliance is met. This can put significant strain on a business and can also damage its reputation.

Civil Lawsuits

If an employee is injured and there is a workers’ compensation policy in place, they will go through the system and are given a degree of certainty when paying out for their injuries.

However, the injured employee can sue the employer if there is no workers’ compensation coverage. In a civil court, the jury will decide the amount the plaintiff is entitled to for their injuries.

In addition, the employer will also have to pay for the attorney to defend the case. So, the employer will have fines, a larger court settlement, and the added cost of legal counsel.

Other Penalties

In addition to steep fines and court fees, an employer may also face a number of criminal violations depending on the monetary value of the fraud that has been committed. Not carrying coverage, filing an altered or fraudulent certificate as proof of coverage, submitting a false exemption certificate, or misclassifying employees for lower premiums constitute felonies.

As you can see, not having mandatory workers’ compensation coverage in Florida can prove to be costly and can have a damaging effect on the business.

If you work in Florida and were injured and your employer refuses to provide workers’ compensation benefits, they may be facing criminal penalties. Contact a knowledgeable workers’ compensation attorney today to see how they can help.