04/05/2026
https://www.flsenate.gov/Laws/Statutes/2024/Chapter440
An eligible employer who knowingly fails to carry required workers' compensation insurance is committing insurance fraud and violating state laws. This illegal activity can result in severe penalties, including hefty fines, stop-work orders, and imprisonment.
Key Aspects of Employer Workers' Comp Fraud:
Failure to Obtain Coverage: Knowingly operating without required insurance.
Misclassifying Employees: Falsely labeling employees as independent contractors to avoid premiums.
Payroll Fraud: Underreporting payroll or falsifying records to lower insurance costs.
False Statements: Presenting false information to insurers or state agencies regarding coverage.
Consequences for Employers:
Criminal Charges: In Florida, for example, failing to carry coverage is a third-degree felony, punishable by up to five years in prison and fines.
Stop-Work Orders: Businesses may be forced to shut down immediately.
Significant Penalties: Employers may face fines of $1,000 per day for continuing operations while under a stop-work order.
Liability: Employers are still personally responsible for paying for injuries sustained by employees while uninsured.
Employers must adhere to state regulations, which often mandate insurance even for small businesses with only a few employees. Employees who suspect fraud can report it to state workers' compensation fraud bureaus.
Disclaimer: The information on this system is unverified. The journals or printed bills of the respective chambers should be consulted for official purposes.
