Workers’ compensation in Florida: Guide for contractors

Construction workers regularly face risks to their health and safety. Slips and falls, struck-by incidents, and exposure to toxic chemicals are all frequent hazards on jobsites. According to a review from the Bureau of Labor Statistics, there were more than 160,000 workplace injuries and illnesses in the construction industry during 2024 alone. 

In the event of an on-the-job illness or injury, employees use workers’ compensation insurance to cover the cost of medical treatment and lost wages. Employers in Florida are required to offer workers’ comp to their employees. 

Explore the requirements for workers’ compensation in Florida, and learn how to set up compliant payroll and reporting in the Sunshine State.

How workers’ compensation works in Florida

Workers’ compensation law in Florida, as outlined in Statute Chapter 440, pays medical and partial wage benefits to employees who suffer an injury or illness on the job. Like New York and Illinois, Florida’s workers’ comp is a no-fault system, meaning workers typically receive benefits regardless of who’s at fault for the injury. 

Say a laborer is carrying roofing materials from one side of the jobsite to the other. Despite a recent safety briefing, they take a shortcut rather than using the designated walkway and fall into an excavation ditch, resulting in a broken femur. While the fault lies with the worker, they’re still entitled to make a claim and receive benefits.

Florida workers’ comp exceptions

Although Florida uses a no-fault system, employees aren’t protected in the following situations: 

• Horseplay: Workers engage in silly or reckless behaviors to show off.
• Fighting: Employees get into an altercation on the jobsite. However, if the injured party didn’t start the fight or were victimized, they still might qualify for benefits.
• Intoxication: Crew members partake in drugs or alcohol at work or test positive for these substances after the incident. Those who test positive for illegal drugs post-injury may also be denied benefits, even if substance use didn’t cause the accident.
• Self-afflicted injuries: Workers intentionally cause an injury. In this case, employers are responsible for proving the harm was self-inflicted. 

What these regulations mean for employers

Construction employers in Florida who carry insurance for every worker are largely protected from lawsuits. For example, an employer fails to install secure guardrails on an elevated platform, resulting in a serious injury. The construction company may face penalties for failing to comply with OSHA safety standards, but the injured worker’s remedy is the comp claim, not a negligence suit. 

Most Florida businesses are legally required to purchase coverage for every worker if they have four or more employees. But construction companies are unique in that hiring even just one employee triggers coverage requirements.

Reporting deadlines and how benefits are calculated

In Florida, workers have 30 days from the time of the incident to inform their employer of the injury or illness. The employer’s payroll or HR team then has seven days from the time of notification to report the injury to their insurance carrier. This deadline is an important compliance obligation for employers, because failure to report is a direct violation of Florida law that may carry fines of up to $500.

While medical benefits kick in immediately, workers don’t typically receive benefits for lost wages until the eighth day they miss work. Disability payments kick in after an initial seven-day waiting period and are calculated as a percentage of the workers average weekly wage (AWW), including overtime pay, up to $1,358 per week.

There are several components to workers’ compensation benefits in Florida, and each has its own triggers and coverage limits:

• Medical care: Authorized medical treatment is 100% covered by the insurer at no cost to the injured party. Most coverage plans extend to treatment for common construction injuries such as slips and falls, struck-by accidents, and ergonomic strain, but insurance carriers may require certain facilities or treating physicians.
• Temporary total disability: This benefit applies to workers who are unable to work due to their injuries and is paid at two-thirds of their AWW. Workers may receive temporary disability for up to 104 weeks total. In cases of severe, life-altering injuries such as loss of limb or vision, employees may be eligible to receive 80% of their AWW for up to six months.
• Temporary partial disability: When employees are authorized by their medical provider to return to work, there may be restrictions at a lower pay rate. If the employee is earning less than 80% of their pre-injury wages, then temporary partial disability (which counts toward the 104-week cap) can be paid at two-thirds of their AWW. 
• Impairment income benefits: If the worker has reached maximum medical improvement, their treating physician may assess their condition and determine required work restrictions and a permanent impairment rating. If the rating is anything above 0%, the worker may be entitled to receive ongoing benefits.
• Permanent total disability: Workers who suffer severe, lifelong injuries that prevent them from returning to any form of gainful employment after reaching maximum medical improvement may be entitled to permanent total disability payments.
• Death benefits: In cases of workplace death, dependents of the deceased worker may be entitled to compensation up to $150,000 as well as up to $7,500 in funeral expenses.

Coverage requirements by business type and headcount

Rules surrounding workers’ comp in Florida can vary depending on the type and size of the business. Construction typically faces stricter workers’ compensation requirements and heftier noncompliance penalties due to the high-risk nature of construction work. 

Here are some important workers’ comp requirements that Florida contractors need to know. 

General and non-construction businesses

Most businesses are required to carry workers’ comp insurance if they have four or more employees, including full and part-time workers, corporate officers, and LLC members. 

Construction businesses and subcontractors

Contractors must carry workers’ comp insurance if they have one or more employees. But coverage obligations extend beyond direct employees. 

General contractors (GCs) must confirm all subcontractors on the site carry their own insurance via a certificate of coverage. This matters because an uninsured sub’s employee becomes the GC’s statutory employee. The claim lands on the GC’s policy, the payroll lands in the GC’s audit, and the premium follows on renewal.

Agricultural businesses

Agricultural businesses must purchase coverage if they have:

• Six regular employees, OR
• 12 seasonal employees who work more than 30 days in a season or more than 45 days in a calendar year

While this doesn’t impact most construction companies, those that work on agricultural projects should be aware of these requirements.

Sole proprietor coverage rules

Sole proprietors not in construction aren’t considered employees and aren’t required to carry workers’ comp insurance. However, construction sole proprietors are considered employees and must carry a policy or request formal exemption.

Officer exemption limits

Up to three corporate officers in a construction business can be exempt from coverage. However, they must each own at least 10% of the company and file for exemption with the state.

Penalties for noncompliance

If an investigation uncovers noncompliance, companies failing to cover their employees may be hit with:

• Stop-work orders: Contractors may be ordered to cease all construction activities, which may lead to significant delays or permanent shutdown.
• Financial penalties: Fines are typically twice the amount the contractors would have paid in premiums over the previous year (two years for repeat violations). The minimum penalty is $1,000.
• Civil action: Without workers’ comp coverage, the injured worker might sue their employer for damages and medical costs.

Stay ahead of Florida workers’ comp compliance with the right payroll setup

Florida’s workers’ compensation laws involve significant reporting requirements and payroll obligations. Even small payroll mistakes can lead to miscalculations or worker misclassifications that impact worker benefits and leave contractors vulnerable to penalties and premium hikes.

Miter Payroll helps contractors stay ahead of workers’ comp issues. Payroll teams can configure rates by job, worker classification, and cost code for more accurate premium calculations. Contractors can also run certified payroll and workers’ comp reports from the same payroll data, exporting the workers’ comp report grouped for an auditor or detailed by earning.

Frequently asked questions

How long do Florida workers’ comp income benefits last?

Workers can receive temporary benefits for up to 104 weeks of combined partial and total disability. Payments begin once the employee has been out of work for eight days.

How much does workers’ comp cost in Florida?

Workers’ compensation rates are calculated using company payroll for each worker. Premiums are determined by each job classification, which carry their own rates per $100 of payroll. The National Council on Compensation Insurance sets classification codes, with more dangerous jobs usually carrying higher rates.

How do corporate officers file for an exemption?

Corporate officers may submit a Notice of Election to be Exempt (DWC-250) with the Florida Division of Workers’ Compensation.

How do contractors verify a subcontractor’s proof of coverage?

Contractors should check subcontractors’ insurance status before work starts using the Florida workers’ compensation proof of coverage database.