LTC 129-2016 Update on Monitoring Contractors' Compliance with Workers' Compensation Laws OFFICE OF THE CITY MANAGER
NO. LTC# 129-2016 LETTER TO COMMISSION
TO: Mayor Philip Levine and Members f the City mmission
FROM: Jimmy L. Morales, City Manager
DATE: March 21, 2016
SUBJECT: Update on the Monitoring of Contra ors' Compliance with Workers' Compensation
Laws Implemented by the Building Department.
In 2014 I provided a Letter to Commission addressing the building contractors who claim
Worker's Compensation exemption and the liability that may incur to property owners.
The purpose of this update is to provide notice of an addition to the procedure being utilized by
the Building Department to monitor compliance with State workers' compensation laws by
contractors that have active projects in the City of Miami Beach. The new procedure will denote
a specific job cost that will trigger a need for additional insurance.
Chapter 440 of the Florida Statutes generally requires any employer in the construction industry
to carry worker's compensation insurance coverage for its employees. Employers may exempt
up to three(3)of their officers from this coverage, provided that each of the officers has at least
ten percent ownership interest in the company. The State statute makes the Building Official
responsible for assurance that no permit is issued without liability and worker's compensation
insurance.
The Building Department will require proof of worker's compensation insurance or the contracting
firm to be"additionally insured" by their building/structural subcontractor if the value exceeds
$5,000 of the construction cost.
C: JLM/SMT/MVF/EB