1. 1 Workers’ Compensation Compliance Presentation Andrew Sabolic, Chief Bureau of Compliance Division of Workers’ Compensation Phone: (850) 413-1600 Email: andrew.sabolic@fldfs.com

2. 2 Benefits of Compliance Ensures coverage is available to provide statutory benefits to injured workers Promotes level playing field for all employers Premium dollars are added to the system that had been previously evaded through non-compliance

3. 3 Division of Workers’ Compensation Powers to Enforce Compliance Conduct investigations to ensure employer compliance Enter and inspect businesses to investigate employer compliance Examine and copy business records Authority to issue a stop work order to any employer that has failed to secure coverage Penalty is 1.5 times what the employer would have paid in premium during the period(s) of non- compliance

4. 4 Stop Work Orders Issued FY 04/05 statistics are as of 03/28/05

5. 5 Assessed Penalties FY 04/05 statistics are as of 03/28/05

6. 6 Premium Generated FY 04/05 statistics are as of 03/28/05

7. 7 Number of Workers’ Covered FY 04/05 statistics are as of 03/28/05

8. 8 New “Tools” for Employer Compliance Expands definition of “failure to secure compensation”. Out-of-state employers who have employees engaged work in Florida must use Florida rates and rules. The department may require any employer who has been found non-compliant to file periodic reports with the department for up to a two year probationary period.

9. 9 New “Tools” for Employer Compliance Stop-work orders and penalty assessment orders shall be in effect against any successor corporation or business entity with the same principals or officers. Any subsequent violation of compliance by the employer within 5 years after the most recent violation shall constitute insurance fraud. Ability to impute payroll for penalty calculation

10. 10 Construction Exemption Eligibility Requirements Up to three corporate officers of a corporation or any group of affiliated corporations or members of a limited liability company elect to be exempt. Each officer must be a shareholder owning at least 10 % of the stock of the corporation and must be listed as an officer with the Division of Corporations. Members of LLCs must show by notarized affirmation 10% ownership of the company.

11. 11 Compliance Investigations How do we determine our investigations? Referrals Site visits Use of other agencies’ data Sweeps District, Regional & Statewide

12. 12 Florida’s Historical Rate Changes

13. 13 Construction Policy Tracking Database Web-based program that allows general contractors to track the policy changes of their subcontractors Free service 3,686 registrants tracking 14,933 sub-contractor policies www.fldfs.com/WCAPPS/Contractor/

14. 14 Division Website e-Alert system Proof of Coverage Database Construction Policy Tracking Database Claims Statistics Publications Bulletins Informational Memorandums WC Legislation www.fldfs.com/wc

15. 15 Thank You