Workers' Compensation
Domain 3 - Workers' Compensation tests Florida Chapter 440 coverage rules, exemptions, and enforcement as they apply to fire alarm contractors. The exam focuses on the construction-industry threshold, employee classification, and the consequences of going bare.
Coverage triggers
Florida requires construction employers with one or more employees to secure workers’ compensation coverage. Non-construction employers generally reach the requirement at four or more employees. Coverage must be in place before work begins and maintained continuously. Corporate officers and LLC members may have limited exemption elections, but construction exemptions are narrow and must be properly filed with the Division of Workers’ Compensation. An exemption is not a substitute for coverage for non-exempt employees.
Employee vs. independent contractor
Labels do not control. If the company controls schedule, tools, supervision, and method of work, the worker is likely an employee. Paying by 1099 does not avoid Chapter 440 exposure. Uninsured employers can face stop-work orders, daily penalties, civil liability, and loss of defenses.
Reporting and posting
Employers must post the required workers’ compensation notice. Employees generally must report injuries within 30 days; employers must report lost-time injuries to the carrier promptly. First aid and return-to-work programs should be documented.
Worked example
A two-person fire alarm company has an owner and one helper. The owner believes no coverage is needed because the helper is part-time. The helper falls from a ladder and is uninsured. Reasoning: construction coverage is triggered at one or more employees; part-time status does not exempt the helper. The owner faces a stop-work order, penalties, and direct liability. The helper’s exclusive-remedy protection for the employer is also compromised.
Traps that cost marks
- Counting only full-time employees for the construction threshold.
- Treating a regular helper as a 1099 independent contractor.
- Assuming a corporate officer exemption covers all employees.
- Letting a filed exemption lapse or failing to renew coverage.
- Not posting the required notice or delaying injury reporting.
Exam focus
Identify the industry, the number of employees, and whether the worker is truly exempt. Then apply the Chapter 440 consequence, not general HR practice.