Florida Workers' Comp Requirements by Industry

Last reviewed: November 2026, by Cheap Workers Comp Florida, licensed Florida agency DFS #L077476

The Three Thresholds at a Glance

Florida's workers' compensation law, Chapter 440 of the Florida Statutes, starts from a simple rule: every employer covered by the chapter must secure compensation for its employees (section 440.10(1)(a)). The question for most business owners is whether they are a covered employer yet, and that turns on the industry they are in and how many people they employ.

Section 440.02(20)(b)2. brings into the system all private employment in which four or more employees are employed by the same employer, and, for the construction industry, all private employment in which one or more employees are employed. The Division of Workers' Compensation's own guidance adds two points that trip people up: owners who are corporate officers or LLC members count toward the number, and part-time employees count the same as full-time employees. Remote employees count too.

Construction: One Employee Is Enough

Construction is defined in section 440.02(10) as for-profit activities involving any building, clearing, filling, excavation, or substantial improvement in the size or use of any structure or the appearance of any land. The statute lets the Division define the trades by rule, and rule 69L-6.021, Florida Administrative Code, does that by listing the class codes that count as construction. Roofing, carpentry, electrical, plumbing, HVAC, drywall, painting, masonry, concrete, steel erection, pool construction, excavation, fence installation, and many others are on that list.

The rule also contains the sentence that decides most borderline cases: an employer is engaged in the construction industry when any portion of its business operations is described in one of the listed construction codes. A handyman business that does mostly non-construction work but also installs doors or does carpentry is a construction employer for coverage purposes.

Construction is also where owner exemptions are tightest. Under section 440.02(18)(b)2., no more than three officers of a corporation (or group of affiliated corporations) may elect to be exempt, and each must be a shareholder owning at least 10% of the stock. Section 440.02(11) treats an LLC member who owns at least 10% of the company as a corporate officer. A construction sole proprietor or partner is treated as an employee under section 440.02(18)(c)4., and the exemption election in the statute is written for corporate officers, which is why construction owners who want to be exempt typically operate through a corporation or LLC.

Non-Construction: Four or More

Restaurants, retailers, offices, cleaning companies, auto shops, trucking firms, home health agencies, hotels, and most other businesses are non-construction. They must carry coverage once they have four or more employees. Two details matter:

• Owners count. Corporate officers and LLC members are employees unless they file a notice of election to be exempt under section 440.05. A three-person corporation with one hourly employee has four employees for this purpose unless officers have valid exemptions.
• Sole proprietors and partners do not count by default. Under section 440.02(18)(c)1., a sole proprietor or partner who is not engaged in construction is not an employee unless he or she elects to be included, which the Division handles with Form DWC-251.

Non-construction officers face fewer exemption limits than construction officers. The three-officer cap and the 10% ownership requirement in section 440.02(18)(b)2. are written for the construction industry.

Agriculture: Six Regular or Twelve Seasonal

Farm labor has its own exclusion in section 440.02(20)(c)2. Agricultural labor on a farm for a bona fide farmer is outside the law if the farm employs 5 or fewer regular employees and fewer than 12 other employees at one time for seasonal agricultural labor that is completed in less than 30 days, as long as that seasonal employment does not exceed 45 days in the same calendar year. Put the other way, coverage is required at 6 regular employees, or at 12 seasonal workers once the seasonal work runs past those day limits. The statute's definition of "farm" includes stock, dairy, poultry, fruit, fur-bearing animal, fish and truck farms, ranches, nurseries, and orchards.

Landscaping: Construction or Not?

This is the question we get most, and the honest answer is that it depends on the work. Here is what the rule actually says. Rule 69L-6.021 lists code 0042, Landscape Gardening and Drivers, as a construction classification, and an employer is in the construction industry when any portion of its operations falls under a listed code. The statutory definition of construction in section 440.02(10) also includes substantial improvement in the appearance of land.

So a landscaping company whose operations are classified under 0042 is treated as construction, and the one-employee threshold applies. Whether a particular business's operations belong in 0042, or in some other classification, is a classification question answered by the NCCI scopes manual that the rule adopts by reference, and by the carrier's or NCCI's review of what your crews actually do. Tree trimming, for instance, is classified separately (code 0106), and that code is not on the 69L-6.021 construction list. If you install plants, sod, hardscape, or irrigation, plan on being treated as construction. If you are unsure, the Division points employers to NCCI for classification questions, and until you have an answer, carrying coverage from the first employee is the safe course.

Common Florida Industries and Their Class Codes

Rates below are the 2026 Florida filed rates per $100 of payroll from our live database. Your actual price depends on the carrier or PEO, your payroll, and your experience mod. A single business can have several codes.

"Typical" means the code most often used for that kind of business; your carrier assigns the actual code from what your employees do. Search any code on the Florida class code search.

Subcontractors and the Statutory Employer Rule

Construction has a second layer that catches general contractors off guard. Under section 440.10(1)(b), when a contractor sublets any part of its work, the contractor's employees and the subcontractors' employees on that work are treated as employed in one business, and the contractor must secure compensation for all of them except employees of a subcontractor that has secured its own coverage. In practice that means an uninsured sub's crew becomes the GC's responsibility.

Section 440.10(1)(c) requires the contractor to collect evidence of coverage from each subcontractor, and if a corporate sub's officer is exempt, a copy of that officer's exemption certificate. The Division adds that contractors must confirm coverage before work begins, and rule 69L-6.032 lists the documentation. Section 440.02(18)(c)2. confirms the other side: a person paid as a subcontractor by a construction contractor is an employee unless the sub has a valid exemption or has its own coverage. A GC that pays a "1099 sub" without either has an uninsured employee, and auditors will add that payroll to the GC's policy.

Out-of-State Employers Working in Florida

Section 440.10(1)(g) requires any employer with employees engaged in work in Florida to obtain a Florida policy or endorsement that uses Florida class codes, rates, rules, and manuals. Failure to do so is a felony of the second degree. The statute sets standards for when work counts as Florida work. Notably, construction employees doing new construction, remodeling, or repairs in Florida are assigned to Florida even if they return to their home state each night, and employees hired for a specific Florida project are assigned to Florida.

The Division's guidance says out-of-state employers must notify their carrier that they are working in Florida and make sure Florida is listed in Item 3.A of the policy, or obtain a Florida policy from a Florida-approved carrier. It also notes that an extraterritorial reciprocity provision in the home state's law may let some employers work temporarily in Florida on a home-state policy, so check both states' rules before relying on it.

What Happens If You Get It Wrong

An employer that should have coverage and does not faces a stop-work order and a penalty under section 440.107(7). The penalty is 2 times the premium the employer would have paid for the uninsured period, looking back 12 months, or 24 months for repeat or concealment cases, with a $1,000 minimum. Our stop-work order guide walks through the process. If you have just crossed a threshold, the instant quote tool prices coverage for your codes and payroll in a few minutes.

Frequently Asked Questions

Related Resources

• Construction vs non-construction in Florida workers' comp
• Florida officer and LLC member exemptions
• Subcontractor certificates of insurance
• 1099 contractors and workers' comp
• How much workers' comp costs in Florida
• Florida workers' comp law overview

Sources

• Section 440.02, Florida Statutes (2026): Definitions
• Section 440.05, Florida Statutes (2026): Election of exemption
• Section 440.10, Florida Statutes (2026): Liability for compensation
• Section 440.107, Florida Statutes (2026): Employer compliance and penalties
• Rule 69L-6.021, F.A.C.: Construction Industry Classification Codes
• Florida Division of Workers' Compensation: Coverage Requirements
• Division of Workers' Compensation: Key coverage and compliance brochure (PDF)