New Workers Compensation Requirements
A new law, passed by the Florida Legislature and signed by the Governor, changed the workers compensation insurance requirements for contractors and subcontractors working on some types of construction sites in the state.
New Workers Compensation Requirements
In the past, some contractors and subcontractors were legally permitted to exempt themselves and/or their employees from the requirement of purchasing workers compensation insurance. These latest legislative changes alter and restrict the guidelines under which contractors and subcontractors can be exempt from purchasing workers compensation insurance.
The new guidelines, effective July 1, 2002, do NOT allow contractors or subcontractors to exempt themselves, or those working on their behalf, if the project is a commercial project valued at $250,000 or more. The value is to be established by the local municipalitys building permit or Southern Building Code Conference International/International Code Council (SBCCI/ICC) Building Code Valuation Data.
What does this mean to me as a contractor or a subcontractor?
The new law and the rule that implements it place several major requirements on contractors and subcontractors in Florida.
Contractors and subcontractors who work on commercial projects valued at $250,000 or more must have workers compensation insurance in place for everyone working on a contractors or subcontractors behalf at the construction or renovation site. This includes sole proprietors, partners and corporate officers, if they visit the job site.
Contractors and subcontractors who would normally treat certain workers as independent contractors cannot treat them as such for the purposes of workers compensation insurance coverage when working on a commercial project valued at $250,000 or more. When working on these projects, workers must be considered either employers or employees, and must have the appropriate workers compensation coverage in place.
All employers working on commercial projects valued at $250,000 or more must maintain employee payroll and coverage records for those jobs and must be able to produce these records upon request.
Failure to maintain the appropriate records and/or insurance will render a contractor or subcontractor in violation of the law and makes them subject to penalties under the provisions of Section 440.107, F.S.
General contractors on commercial construction or renovation sites are responsible for ensuring that all subcontractors meet the mandatory insurance requirements for crews working on their sites.
