How to File a Workers Comp Exemption in Florida (2026 Update)

In Florida, most businesses are required by law to carry workers’ compensation insurance for their employees. This coverage provides critical medical and wage benefits to workers who get injured or fall ill on the job. However, the law allows certain business owners to opt out of this system by filing for an exemption. Navigating the exemption process can feel complex, but understanding the rules is essential. This updated guide will walk you through Florida’s workers’ compensation exemption requirements for 2026, including who qualifies, how to apply, and what you need to do to maintain your exempt status.

Who Needs Workers’ Compensation in Florida?

First, it’s important to understand the baseline requirements. Your business must provide workers’ compensation coverage if it meets any of the following criteria:

• Construction Industry: You have one or more employees (full-time or part-time). This includes business owners who are not exempt.
• Non-Construction Industry: You have four or more employees (full-time or part-time), including non-exempt business owners.
• Agricultural Industry: You have six or more regular employees or 12 or more seasonal workers who work for more than 30 days during a season.

If your business falls into one of these categories, you must either secure a workers’ comp policy or ensure that any owners who wish to opt out have a valid Certificate of Election to be Exempt.

Do You Qualify for a Workers’ Comp Exemption?

Eligibility for an exemption depends on your industry and your business structure. The state differentiates between construction and non-construction businesses, each with its own set of rules.

General Eligibility Requirements

To apply for an exemption, you must first meet these baseline conditions:

• Your business must be registered and active with the Florida Department of State.
• The business cannot have an active Stop-Work Order or be in violation of workers’ comp laws.
• You, as the applicant, must own at least 10% of the business.
• You must have a valid Florida driver’s license or Florida ID card.

Construction Industry Requirements

For businesses in the construction industry, the rules are stringent.

• Corporations: A maximum of three officers can file for an exemption.
• Limited Liability Companies (LLCs): A maximum of three members can file for an exemption.

Non-Construction Industry Requirements

The rules are slightly more flexible for businesses outside of construction.

• Corporations: There is no limit on the number of corporate officers who can apply for an exemption, as long as each officer owns at least 10% of the company.
• Limited Liability Companies (LLCs): A maximum of 10 members can file for an exemption.

It is critical to confirm your eligibility before applying. The application fee is non-refundable, so you will forfeit the payment if your application is denied because you do not qualify.

How to Apply for an Exemption: A Step-by-Step Guide

The application process is handled online through the Florida Division of Workers’ Compensation. Here’s what you need to do.

Step 1: Complete the Mandatory Online Tutorial

As of January 1, 2023, all new and renewing applicants must complete an online workers’ compensation coverage and compliance tutorial. This training is a prerequisite for the application and covers your rights and responsibilities as an exempt business owner. You must certify that you have completed this tutorial before you can proceed.

Step 2: Gather Your Information

Before starting the online application, have the following information ready:

• Your Florida driver’s license number or Florida ID number.
• Your company’s Federal Employer Identification Number (FEIN).
• The business’s document number from the Florida Department of State.
• Your Social Security Number.

Step 3: Complete the Online Application

Navigate to the Division of Workers’ Compensation’s “Notice of Election to be Exempt” online portal.

1. Choose your industry (Construction or Non-Construction).
2. Review the eligibility information carefully.
3. Click “Apply or Renew” to begin the application.
4. Fill out the form with your personal and business details.
5. Pay the required fee. The construction industry exemption fee is $50 plus a small convenience fee. There is no fee for non-construction exemptions.

The Division has up to 30 days to review and approve your application. You will receive an email notification once your certificate is approved and ready to be printed.

What Happens After You’re Approved?

Once approved, your exemption is valid for two years. It’s crucial to remember that this exemption applies only to you as the business owner—not to your employees. If you have employees, you still need to provide workers’ compensation coverage for them. Holding an exemption means you are not considered an employee of the business. As a result, you cannot receive workers’ compensation benefits if you are injured on the job. You are personally responsible for your own medical bills and lost wages. You must also keep your Certificate of Exemption and be prepared to present it to contractors or upon request from state investigators.