Helpful Tips for Employers

NUMBER OF EMPLOYEES



• The Florida Workers’ Compensation Act is applicable if you hire four or more employees or, if in the construction industry, one or more employees.
  
• If you are a sole proprietor and your only employee is yourself, workers compensation is not applicable (except in the construction industry).
  
• If an employer outside the construction industry with fewer than four employees chooses not to secure workers compensation coverage, he/she must post clear written notice in a conspicuous location at each work site directed to all employees and other persons performing services at the worksite of their lack of entitlement to benefits under chapter 440.55 Florida Statues.

CONSTRUCTION INDUSTRY



• Every contractor or subcontractor must, as a condition to applying for and receiving a building permit, show proof that he has secured coverage for his employees under 440.55 Florida statute. Proof of coverage must be evidenced by a certificate of insurance, a valid certificate of exemption approved by the Division of Workers’ Compensation or proof of the employer’s right to self-insure.
  
• Out-of-state contractors doing business in Florida are required to submit proof of workers’ compensation coverage under Florida law and there must be evidence that the contractor’s carrier or self-insurance fund has knowledge of the contractor’s intent to do business in this state. Proof of workers’ compensation coverage must be shown as a condition to the issuance or renewal of a certificate or registration of a contractor with the Construction Industry Licensing Board. For more information, please refer to http://www.nascla.org/links.htm
  
• Any person engaged in the business of electrical contracting must show proof of workers’ compensation coverage for the issuance or renewal of a certificate or registration with the Electrical Contractor’s Licensing Board. For more information, please refer to Section 440.10, Florida Statutes. For more information, please refer to http://www.nascla.org/links.htm

SUBCONTRACTOR



• A contractor/subcontractor relationship arises in workers’ compensation law when one business entity or individual enters into a contract with another, assumes certain responsibilities, and thereafter contracts with a third party to perform all or a portion of that job.
  
• Employees of a subcontractor are considered the statutory employees of the general contractor and the general contractor must purchase workers’ compensation for such individuals. It does not make any difference that the subcontractor is an independent contractor – if there is a contractor /subcontractor relationship, the general contractor must still purchase workers’ compensation coverage for the employees of the subcontractor.
  
  The only exception to this obligation to purchase coverage for employees of subcontractors is if the subcontractor himself purchases workers compensation coverage. In such cases, the general contractor should insist on a current Certificate of Insurance from the subcontractor showing evidence that he has workers compensation coverage in force. The contractor should then register in writing with the workers compensation carrier for the subcontractor. This registration will entitle the contractor to receive written notification from the carrier of the subcontractor of any cancellation or non-renewal of the subcontractor’s policy. For more information, you may refer to Section 440.05, Florida Statutes or Part Six of the FWCJUA Operations Manual.

INDEPENDENT CONTRACTOR



• You are not responsible to secure workers’ compensation coverage for employees of independent contractors. However, there are employers who try to avoid paying workers compensation premiums by entering into contracts making everyone independent contractors. You should be aware that such contracts are not absolutely determinative of whether there is a true independent contractor relationship as opposed to an employee/employer relationship, for which coverage is needed.
  
• Independent contractors are specifically defined under the law. In order for such a relationship to exist, the independent contractor must meet 4 of the 6 criteria listed below:

1. maintain a separate business with his or her own work facility, truck, equipment, materials or similar accommodations;
2. holds or has applied for a federal employer identification number, unless the independent contractor is a sole proprietor who is not required to obtain a federal employer identification number under state or federal regulations;
3. receives compensation for services rendered or work performed and such compensation is paid to a business rather than to an individual;
4. holds one or more bank accounts in the name of the business entity for the purpose of paying business expenses or other expenses related to services rendered or work performed for compensation;
5. able to perform work for any entity in addition to or besides the employer at his or her own election without the necessity of completing an employment application or process;
6. receives compensation for work or services rendered on a competitive-bid basis or completion of a task or a set of tasks as defined by a contractual agreement, unless such contractual agreement expressly states that an employment relationship exists.

If failing to meet 4 of the 6 criteria, independent contractor status may still be presumed if he/she satisfies any of the following:

1. Independent Contractor performs or agrees to perform specific services or work for a specific amount of money and controls the means of performing the services or work;
2. Independent Contractor incurs the principal expenses related to the services or work that he or she performs or agrees to perform;
3. Independent Contractor is responsible for the satisfactory completion of the work or services that he or she performs or agrees to perform;
4. Independent Contractor receives compensation for work or services performed for a commission or on a per-job basis and not on any other basis;
5. Independent Contractor may realizes a profit or suffer a loss in connection with performing work or services;
6. Independent Contractor has continuing or recurring business liabilities or obligations;
7. Independent Contractor success or failure depends on the relationship of business receipts to expenditures. If you are seeking immunity from workers' compensation coverage for an independent contractor, be sure that such a relationship does in fact exist. For more information, please refer to Section 440.02, Florida Statutes.

CLAIM REPORTING

• To report a claim for an injured employee call 1-800-832-7839
  
  If you or your employees want more information on what to expect should an injury occur, follow this link: FWCJUA service provider: Travelers