Can You Afford to be Non-Compliant?

Non-Compliance Referral Database

The Division investigated 1,794 referrals submitted via the Non-Compliance Referral Database during FY
2014-15. The investigations initiated by the referrals resulted in the issuance of 475 enforcement actions and $9.8 million in assessed penalties against non-
compliant employers or on average $20,631.58 per employer.


Stop-Work Orders

The Division issued 2,727 Stop-Work Orders. Stop-Work Orders are issued for the following violations: failure to obtain workers’ compensation insurance, materially understating or concealing payroll, materially misrepresenting or concealing employee duties to avoid paying the proper premium, materially concealing information pertinent to the calculation of an experience modification factor, and failure to produce business records in a timely manner. Stop- Work Orders require the employer to cease business operations until the Division issues an order releasing the Stop-Work Order.

Assessed $52,422,087 in penalties or on average $19,223.35 per employer.


Orders of Penalty Assessment & Penalties Assessed

In cases where the employer obtains coverage subsequent to the commencement of an investigation, an Order of Penalty Assessment for the failure to maintain coverage is issued in lieu of a Stop-Work Order. During FY 2014-15, 256 employers were issued an Order of Penalty.

Assessed $3,076.729 in penaltiesor on average $12,018.47 per employer.


Exemption – Are Truly Exempt?

The Division processed 76,128 construction industryexemption applications and 36,496 non-construction industry exemption applications in Fiscal Year 14-15. This represents a 12% increase in the number of exemptions processed over the prior year. As of June 30, 2015 there were 988,644 active exemptions. The Division processes an average of 99% of all exemptionapplications within 5 business days of receipt. The increase in construction industry exemption is reflective of the general improvement in Florida’s economy and in the construction industry in particular. The rise in non-construction exemption is due to the statutory change that defines non-construction limited liability company members as “corporate officers”. Corporate officers are employees but are allowed to exempt themselves.



Statics provided by the Joint Report Presented to the President of the Florida Senate & the Speaker of the Florida House of Representatives by The Florida Department of Financial Services Division of Insurance Fraud / Bureau of Workers’ Compensation Fraud & Division of Workers’ Compensation on January 1, 2016.