Exemptions From Workers’ Compensation
Workers’ compensation insurance is intended to be a safeguard for workers, providing access to medical care if they are injured on the job in exchange for waiving their right to sue their employer. However, not every employer is required by law to provide it. In some situations, officers of a corporation may even seek to exempt themselves individually from Florida’s workers’ compensation system. If you have been injured at work, it is important to understand your rights surrounding workers’ compensation coverage.
Workers’ Compensation Not Required For All Employers
The strong majority of Florida businesses are required to offer workers’ compensation insurance to their employees (though not, specifically, to independent contractors). State law requires it of (1) any construction company with 1 or more employees; (2) any company in a “non-construction” industry with 4 or more employees, and (3) any company in the agricultural industry with either 6 regular employees or 12 seasonal workers who work more than a certain number of hours and days.
This does leave out some businesses, namely any sole proprietorship (any business with no employees, just an owner) not in the construction industry. In construction, any corporate officer or sole proprietor is counted as an employee, while in non-construction industries, they usually are not. That said, some businesses are small enough to be right on the cusp of requiring coverage. In that instance, filing for an individual exemption or two may keep a company’s employee quota under the maximum.
Individual Exemptions Save On Costs
In Florida, it is possible for a corporate officer of a corporation, or a member of a limited liability company (LLC) with at least 10 percent interest, to file for an individual exemption from workers’ compensation coverage. An exemption means that the person in question voluntarily relinquishes their right to workers’ compensation benefits if they are injured on the job – the key word being voluntary, meaning that you cannot be forced into exempting yourself.
The average person might wonder why anyone would choose to do this, but there is one major reason: a simple wish to save money. A corporate higher-up may choose to go without workers’ compensation benefits in order to potentially avoid having to provide benefits to everyone. If, for example, a paper company has 4 employees, the corporate officer may choose to exempt themselves from workers’ compensation in order to get the count down to 3 – which then exempts the company as a whole from having to have coverage in the first place.
Contact An Orlando Workers’ Compensation Attorney
In general, the average worker need not worry about suddenly losing workers’ compensation benefits, even at a small company, simply because one must consent to be exempt. If you still have questions on the process, however, calling an Orlando workers’ compensation attorney from the Hornsby Law Group can help to get them answered. Call us today to schedule a free consultation.
Source:
myfloridacfo.com/division/wc/employer/coverage-requirements
