LTC 124-2014 New Procedures for Monitoring Contractors' Compliance with Workers' Comp MIAMI BEACH I VFD
OFFICE OF THE CITY MANAGER 2014 APR 16 AM 9. 33 .
NO. LTC# /�5`—.���� LETTER TO COMMISSION ,�
CITY GL 11- a OFF IC
TO: Mayor Philip Levine and Members f the Ci Commission
FROM: Jimmy L. Morales, City Manager
DATE: April 10, 2014
SUBJECT: New Procedures for the Monitori of Contractors' Compliance with Workers'
Compensation Laws Implements by the Building Department
The purpose of this Letter to Commission is to provide notice of a new 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.
Chapter 440 of the Florida Statutes generally requires any employer in the construction
industry to carry workers' 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 a ten percent ownership interest in the company. A recent review of
Building Department records showed that there are more than 900 contractors with active
projects that are claiming the workers' compensation insurance exemption. In an effort to
protect property owners who could incur liability due to this lack of insurance coverage by
hired contractors, the Building Department now requires a Notice to Owner(copy attached)
to be filed, indicating the claim of exemption by the contractor, as well as the property
owner's informed consent.Additionally, the Building Department will be performing random
inspections at job sites throughout the City to verify proper insurance coverage.
The Notice to Owner forms may be downloaded at www.miamibeachfl.qov/building/. Please
feel free to contact Building Director/Official Mariano Fernandez at 673-7610, Extension
6868, with any questions.
JLM J/ VF/SS
Building Department
1700 Convention Center Drive,2"d FL
101AMI B Miami Beach, Florida 33139
305.673.7610
Notice to Owner — Workers' Compensation Insurance Exemption
Florida Law requires Workers' Compensation insurance coverage under Chapter 440 of the Florida Statutes. Fla. Stat. §
440.05 allows corporate officers in the construction industry to exempt themselves from this requirement for any
construction project prior to obtaining a building permit. Pursuant to the Florida Division of Workers' Compensation
Employer Facts Brochure:
An employer in the construction industry who employs one or more part-time or full-time
employees, including the owner, must obtain workers' compensation coverage.
Corporate officers or members of a limited liability company (LLC) in the construction
industry may elect to be exempt if:
1. The officer owns at least 10 percent of the stock of the corporation, or in the
case of an LLC, a statement attesting to the minimum 10 percent ownership;
2. The officer is listed as an officer of the corporation in the records of the
Florida Department of State, Division of Corporations; and
3. The corporation is registered and listed as active with the Florida Department
of State, Division of Corporations.
No more than three corporate officers per corporation or limited liability company
members are allowed to be exempt. Construction exemptions are valid for a period of
two years or until a voluntary revocation is filed or the exemption is revoked by the
Division.
Your contractor is requesting a permit under this workers' compensation exemption. In these circumstances, the City of
Miami Beach does not require verification of workers' compensation insurance coverage from the contractor's company.
Therefore, you may be personally liable for the worker compensation injuries of any person allowed to work under this
permit. Please check with your insurance carrier since most property insurance policies DO NOT cover this type of
liability.
BY SIGNING BELOW YOU ACKNOWLEDGE THAT YOU HAVE READ THIS NOTICE AND UNDERSTAND ITS
CONTENTS.
Owner Contractor
Print Name: Print Name:
Signature: Signature:
State of Florida ) State of Florida )
County of Miami-Dade) County of Miami-Dade)
Sworn to and subscribed before me this Sworn to and subscribed before me this
day of 20 day of ,20
By By
(SEAL) (SEAL)
Type of Identification produced Type of Identification produced
Revised April 8, 2014