Florida Workers' Compensation Exemption: When and How It Applies

Who Can Claim an Exemption?

In Florida, employers with fewer than 25 employees may voluntarily opt out of the workers' compensation system by filing a written exemption. The exemption applies to the employer, not the individual workers; employees remain covered if they join a private plan or if the employer chooses to re‑enroll.

Legal Framework

The exemption is governed by Florida Statutes § 440.225 and the Department of Financial Services regulations. Employers must file the exemption form with the Department of Financial Services before the first payroll date of the year. The exemption is effective for the entire calendar year unless the employer revokes it or the Department denies the request.

Eligibility and Limitations

Key limits include:

• Employer size: < 25 employees.
• All employees must be covered under a private health plan or the employer's own insurance.
• Workers who are not covered by the exemption must still have access to a qualified health insurance plan.

If any employee is injured, the employer must still provide medical care and may be liable for wage replacement under other statutes.

Application Process

1. Complete the "Exemption Request" form available on the Florida Department of Financial Services website.2. Submit the form by the last day of the previous year or before the first payroll of the new year.3. Keep a copy of the signed form in the employer's records. The Department will send a confirmation of acceptance or denial.

Consequences of Non‑Compliance

Employers who fail to file the exemption or who exceed the employee threshold may face penalties, including fines and mandatory reinstatement into the workers' compensation system. Additionally, insurance carriers may refuse to provide coverage if the exemption is improperly claimed.

Revocation and Re‑Enrollment

Employers can revoke an exemption by submitting a written notice to the Department of Financial Services. Re‑enrollment requires filing the exemption form again and meeting all eligibility criteria.

Key Takeaway

Florida employers with fewer than 25 workers can opt out of workers' compensation by filing a proper exemption, but they must ensure all employees are covered by a private health plan and comply with state regulations to avoid penalties.