Florida Senate - 2025 SB 1426 By Senator DiCeglie 18-01347A-25 20251426__ 1 A bill to be entitled 2 An act relating to occupational injury benefit plans; 3 amending s. 440.02, F.S.; revising the definition of 4 the term employee; defining the term qualified 5 compensation alternative employer; amending s. 6 440.03, F.S.; providing an exception to the 7 application of certain provisions of ch. 440, F.S.; 8 amending s. 440.06, F.S.; specifying how an employer 9 may elect to secure the payment of compensation; 10 authorizing an employee of a qualified compensation 11 alternative employer to bring a certain cause of 12 action; specifying that the employee must prove 13 negligence in such action; authorizing the qualified 14 compensation alternative employer to use certain 15 defenses in such action; prohibiting certain 16 employers, in specified suits, from defending the suit 17 on certain grounds; providing that a qualified 18 compensation alternative employer is entitled to an 19 offset to occupational injury benefits paid to and on 20 behalf of employees under certain circumstances; 21 providing construction; creating s. 440.065, F.S.; 22 requiring qualified compensation arrangement employers 23 to adopt a written occupational injury benefit plan; 24 specifying the requirements of such plan; requiring a 25 qualified compensation arrangement employer to grant 26 eligibility for benefits under certain circumstances; 27 prohibiting a qualified compensation arrangement 28 employer from charging a fee, premium, or other 29 similar cost to the covered employee for the 30 occupational injury benefit plan; authorizing the 31 qualified compensation arrangement employer to select 32 or authorize medical providers who provide treatment 33 to covered employees under such plan; providing that 34 the qualified compensation arrangement employer is not 35 required to cover, and is not liable in a negligence 36 lawsuit for, certain injuries, diseases, or 37 conditions; creating s. 440.066, F.S.; requiring a 38 qualified compensation arrangement employer to 39 demonstrate financial responsibility; authorizing the 40 qualified compensation arrangement employer to self 41 fund or insure the benefits and liabilities under its 42 occupational injury benefit plan; specifying the 43 insurance requirements and coverage limits required 44 for such insurance; specifying requirements related to 45 the security held; creating s. 440.067, F.S.; 46 providing that all benefit payments by a qualified 47 compensation arrangement employer are made pursuant to 48 workers compensation law; providing that such law is 49 incorporated in the act by reference; creating s. 50 440.068, F.S.; requiring a qualified compensation 51 arrangement employer to obtain approval from the 52 insurance carrier for administration of claims; 53 authorizing a qualified compensation arrangement 54 employer to self-administer or use a third party to 55 administer claims, provided that certain requirements 56 are met; amending ss. 440.14 and 440.385, F.S.; 57 conforming cross-references; providing an effective 58 date. 59 60 Be It Enacted by the Legislature of the State of Florida: 61 62 Section 1.Present subsections (33) through (41) of section 63 440.02, Florida Statutes, are redesignated as subsections (34) 64 through (42), respectively, a new subsection (33) is added to 65 that section, and paragraph (d) of subsection (18) of that 66 section is amended, to read: 67 440.02Definitions.When used in this chapter, unless the 68 context clearly requires otherwise, the following terms shall 69 have the following meanings: 70 (18) 71 (d)Employee does not include: 72 1.An independent contractor who is not engaged in the 73 construction industry. 74 a.In order to meet the definition of independent 75 contractor, at least four of the following criteria must be met: 76 (I)The independent contractor maintains a separate 77 business with his or her own work facility, truck, equipment, 78 materials, or similar accommodations; 79 (II)The independent contractor holds or has applied for a 80 federal employer identification number, unless the independent 81 contractor is a sole proprietor who is not required to obtain a 82 federal employer identification number under state or federal 83 regulations; 84 (III)The independent contractor receives compensation for 85 services rendered or work performed and such compensation is 86 paid to a business rather than to an individual; 87 (IV)The independent contractor holds one or more bank 88 accounts in the name of the business entity for purposes of 89 paying business expenses or other expenses related to services 90 rendered or work performed for compensation; 91 (V)The independent contractor performs work or is able to 92 perform work for any entity in addition to or besides the 93 employer at his or her own election without the necessity of 94 completing an employment application or process; or 95 (VI)The independent contractor receives compensation for 96 work or services rendered on a competitive-bid basis or 97 completion of a task or a set of tasks as defined by a 98 contractual agreement, unless such contractual agreement 99 expressly states that an employment relationship exists. 100 b.If four of the criteria listed in sub-subparagraph a. do 101 not exist, an individual may still be presumed to be an 102 independent contractor and not an employee based on full 103 consideration of the nature of the individual situation with 104 regard to satisfying any of the following conditions: 105 (I)The independent contractor performs or agrees to 106 perform specific services or work for a specific amount of money 107 and controls the means of performing the services or work. 108 (II)The independent contractor incurs the principal 109 expenses related to the service or work that he or she performs 110 or agrees to perform. 111 (III)The independent contractor is responsible for the 112 satisfactory completion of the work or services that he or she 113 performs or agrees to perform. 114 (IV)The independent contractor receives compensation for 115 work or services performed for a commission or on a per-job 116 basis and not on any other basis. 117 (V)The independent contractor may realize a profit or 118 suffer a loss in connection with performing work or services. 119 (VI)The independent contractor has continuing or recurring 120 business liabilities or obligations. 121 (VII)The success or failure of the independent 122 contractors business depends on the relationship of business 123 receipts to expenditures. 124 c.Notwithstanding anything to the contrary in this 125 subparagraph, an individual claiming to be an independent 126 contractor has the burden of proving that he or she is an 127 independent contractor for purposes of this chapter. 128 2.A real estate licensee, if that person agrees, in 129 writing, to perform for remuneration solely by way of 130 commission. 131 3.Bands, orchestras, and musical and theatrical 132 performers, including disk jockeys, performing in licensed 133 premises as defined in chapter 562, if a written contract 134 evidencing an independent contractor relationship is entered 135 into before the commencement of such entertainment. 136 4.An owner-operator of a motor vehicle who transports 137 property under a written contract with a motor carrier which 138 evidences a relationship by which the owner-operator assumes the 139 responsibility of an employer for the performance of the 140 contract, if the owner-operator is required to furnish motor 141 vehicle equipment as identified in the written contract and the 142 principal costs incidental to the performance of the contract, 143 including, but not limited to, fuel and repairs, provided a 144 motor carriers advance of costs to the owner-operator when a 145 written contract evidences the owner-operators obligation to 146 reimburse such advance shall be treated as the owner-operator 147 furnishing such cost and the owner-operator is not paid by the 148 hour or on some other time-measured basis. 149 5.A person whose employment is both casual and not in the 150 course of the trade, business, profession, or occupation of the 151 employer. 152 6.A volunteer, except a volunteer worker for the state or 153 a county, municipality, or other governmental entity. A person 154 who does not receive monetary remuneration for services is 155 presumed to be a volunteer unless there is substantial evidence 156 that a valuable consideration was intended by both employer and 157 employee. For purposes of this chapter, the term volunteer 158 includes, but is not limited to: 159 a.Persons who serve in private nonprofit agencies and who 160 receive no compensation other than expenses in an amount less 161 than or equivalent to the standard mileage and per diem expenses 162 provided to salaried employees in the same agency or, if such 163 agency does not have salaried employees who receive mileage and 164 per diem, then such volunteers who receive no compensation other 165 than expenses in an amount less than or equivalent to the 166 customary mileage and per diem paid to salaried workers in the 167 community as determined by the department; and 168 b.Volunteers participating in federal programs established 169 under Pub. L. No. 93-113. 170 7.Unless otherwise prohibited by this chapter, any officer 171 of a corporation who elects to be exempt from this chapter. Such 172 officer is not an employee for any reason under this chapter 173 until the notice of revocation of election filed pursuant to s. 174 440.05 is effective. 175 8.An officer of a corporation that is engaged in the 176 construction industry who elects to be exempt from the 177 provisions of this chapter, as otherwise permitted by this 178 chapter. Such officer is not an employee for any reason until 179 the notice of revocation of election filed pursuant to s. 440.05 180 is effective. 181 9.An exercise rider who does not work for a single horse 182 farm or breeder, and who is compensated for riding on a case-by 183 case basis, provided a written contract is entered into before 184 prior to the commencement of such activity which evidences that 185 an employee/employer relationship does not exist. 186 10.A taxicab, limousine, or other passenger vehicle-for 187 hire driver who operates such said vehicles pursuant to a 188 written agreement with a company which provides any dispatch, 189 marketing, insurance, communications, or other services under 190 which the driver and any fees or charges paid by the driver to 191 the company for such services are not conditioned upon, or 192 expressed as a proportion of, fare revenues. 193 11.A person who performs services as a sports official for 194 an entity sponsoring an interscholastic sports event or for a 195 public entity or private, nonprofit organization that sponsors 196 an amateur sports event. For purposes of this subparagraph, such 197 a person is an independent contractor. For purposes of this 198 subparagraph, the term sports official means any person who is 199 a neutral participant in a sports event, including, but not 200 limited to, umpires, referees, judges, linespersons, 201 scorekeepers, or timekeepers. This subparagraph does not apply 202 to any person employed by a district school board who serves as 203 a sports official as required by the employing school board or 204 who serves as a sports official as part of his or her 205 responsibilities during normal school hours. 206 12.Medicaid-enrolled clients under chapter 393 who are 207 excluded from the definition of employment under s. 208 443.1216(4)(d) and served by Adult Day Training Services under 209 the Home and Community-Based or the Family and Supported Living 210 Medicaid Waiver program in a sheltered workshop setting licensed 211 by the United States Department of Labor for the purpose of 212 training and earning less than the federal hourly minimum wage. 213 13.Medicaid-enrolled clients under chapter 393 who are 214 excluded from the definition of employment under s. 215 443.1216(4)(d) and served by Adult Day Training Services under 216 the Family and Supported Living Medicaid Waiver program in a 217 sheltered workshop setting licensed by the United States 218 Department of Labor for the purpose of training and earning less 219 than the federal hourly minimum wage. 220 14.A person employed by a qualified compensation 221 alternative employer. 222 (33)Qualified compensation alternative employer or 223 QCARE employer means any employer who elects coverage for its 224 employees under s. 440.06. 225 Section 2.Section 440.03, Florida Statutes, is amended to 226 read: 227 440.03Application.Every employer and employee as defined 228 in s. 440.02 is shall be bound by the provisions of this 229 chapter, except for a qualified compensation alternative 230 employer. A QCARE employer is bound by only those provisions of 231 this chapter specifically referenced. 232 Section 3.Section 440.06, Florida Statutes, is amended to 233 read: 234 440.06Election Failure to secure compensation; effect. 235 (1)An employer may elect to secure the payment of 236 compensation, as provided in s. 440.10, or elect to be a 237 qualified compensation alternative employer by complying with s. 238 440.065. 239 (2)An employee of a QCARE employer may bring a cause of 240 action against the QCARE employer for negligence in causing an 241 injury; however, there may be no QCARE employer negligence for 242 an ordinary disease of life to which the general public is 243 exposed. In the cause of action, the employee must prove the 244 QCARE employer negligent. The QCARE employer may use any defense 245 available to an alleged tortfeasor under general law. 246 (3)An Every employer who fails to secure the payment of 247 compensation, as provided in s. 440.10, by failing to meet the 248 requirements of s. 440.38 or who fails to secure the payment of 249 compensation by failing to comply with s. 440.065 may not, in 250 any suit brought against him or her by an employee subject to 251 this chapter to recover damages for injury or death, defend such 252 a suit on the grounds that the injury was caused by the 253 negligence of a fellow employee servant, that the employee 254 assumed the risk of his or her employment, or that the injury 255 was due to the comparative negligence of the employee. 256 (4)A QCARE employer is entitled to an offset for the 257 benefits paid to or on behalf of an employee, under an 258 occupational injury benefit plan that meets the requirements of 259 s. 440.065, against any alleged negligence liability of the 260 QCARE employer, its officers, directors, or agents with respect 261 to an injury involving such employee. Benefit payments made 262 under such occupational injury benefit plan shall be considered 263 made by the QCARE employer and may not be considered payment 264 from a collateral source, as the term collateral source may be 265 defined under any applicable rule, statute, judicial decision, 266 or directive. 267 Section 4.Section 440.065, Florida Statutes, is created to 268 read: 269 440.065Requirements of a qualified compensation 270 alternative employer. 271 (1)A QCARE employer shall adopt a written occupational 272 injury benefit plan that provides defined occupational injury 273 benefits for covered employees on a no-fault basis. Such plan 274 may exclude willful or intentional acts to injure oneself or 275 another. Except for the definitions of the terms provided in 276 subsection (2), the plan must include all the definitions of the 277 terms provided in s. 440.02, but only to the extent that such 278 terms are relevant to the benefits required in this section. 279 (2)The occupational injury benefit plan must define all of 280 the following terms as indicated: 281 (a)Accident means an unexpected or unusual event or 282 result that happens suddenly. If a preexisting condition is 283 accelerated or aggravated by an accident arising out of and in 284 the course of employment, only acceleration or aggravation of 285 the preexisting condition reasonably attributable to the 286 accident is compensable. 287 (b)Arising out of means occupational causation. An 288 accidental injury or death arises out of employment if work 289 performed in the course and scope of employment is the major 290 contributing cause of the injury or death. 291 (c)Occupational disease means a disease that is due to 292 causes and conditions that are characteristic of and peculiar to 293 a particular trade, occupation, process, or employment. The term 294 does not include ordinary diseases of life to which the general 295 public is exposed. 296 (d)Wages means the money rate at which the service 297 rendered is recompensed under the contract of hiring in force at 298 the time of the injury and includes only the wages earned and 299 reported for federal income tax purposes on the job where the 300 employee is injured and any other concurrent employment where he 301 or she is also subject to occupational injury coverage and 302 benefits, together with the reasonable value of housing 303 furnished to the employee by the QCARE employer which is the 304 permanent year-round residence of the employee, and gratuities 305 to the extent reported to the QCARE employer in writing as 306 taxable income received in the course of employment from others 307 than the QCARE employer and QCARE employer contributions for 308 health insurance for the employee or the employees dependents. 309 However, housing furnished to migrant workers shall be included 310 in wages unless provided after the time of injury. In employment 311 in which an employee receives consideration for housing, the 312 reasonable value of such housing compensation shall be the 313 actual cost to the employer or based upon the Fair Market Rent 314 Survey promulgated pursuant to s. 8 of the Housing and Urban 315 Development Act of 1974, whichever is less. However, if the 316 QCARE employer contributions for housing or health insurance are 317 continued after the time of the injury, the contributions are 318 not wages for the purpose of calculating an employees average 319 weekly wages. 320 (3)The occupational injury benefit plan must provide 321 medical expense coverage for at least 156 weeks per covered 322 employee, up to at least $300,000 per covered employee. 323 (4)The occupational injury benefit plan must provide lost 324 wage compensation, beginning no later than the 4th full day of 325 disability, of at least 75 percent of the average weekly wages 326 of the employee, for at least 156 weeks from the date of 327 disability. 328 (5)The occupational injury benefit plan must provide death 329 benefits for a covered employees death arising out of 330 employment in an amount not less than $150,000, payable in no 331 more than 60 equal monthly installments. The plan must also pay 332 funeral expenses up to at least $10,000. 333 (6)A QCARE employer must provide benefits to an employee 334 otherwise eligible for occupational injury benefits if the 335 employee reports an accident or a known exposure to an 336 occupational disease within 3 days after such accident, 337 exposure, or diagnosis. 338 (7)A QCARE employer may not charge a fee, premium, or 339 other similar expense to the covered employee for his or her 340 coverage under the occupational injury benefit plan. 341 (8)The QCARE employer may select or authorize the medical 342 providers who provide any treatment to a covered employee under 343 the occupational injury benefit plan. 344 (9)The QCARE employer is not required to cover under the 345 occupational injury benefit plan, nor is the QCARE employer 346 liable in a negligence lawsuit for, any injuries, diseases, or 347 conditions arising from any of the following: 348 (a)A subsequent injury the employee suffers as a result of 349 an original injury arising out of employment unless the original 350 injury is the major contributing cause of the subsequent injury. 351 The employee must demonstrate the major contributing cause by 352 medical evidence. 353 (b)Bodily injury to any person subject to any federal 354 workers compensation law or other federal occupational disease 355 law, including, but not limited to, the Federal Employers 356 Liability Act, the Longshore and Harbor Workers Compensation 357 Act, the Defense Base Act, the Jones Act, or the Migrant and 358 Seasonal Agricultural Worker Protection Act. 359 (c)Any obligation imposed by workers compensation, 360 occupational disease, unemployment compensation, or disability 361 benefits law, or any similar law, except as specifically 362 referenced in this chapter. 363 Section 5.Section 440.066, Florida Statutes, is created to 364 read: 365 440.066Financial responsibility of a qualified 366 compensation alternative employer. 367 (1)A QCARE employer shall demonstrate financial ability to 368 pay benefit and negligence liability claims by complying with 369 this section. 370 (2)A QCARE employer shall insure the benefits and 371 liabilities under its occupational injury benefit plan with any 372 insurance carrier authorized to do business in this state. The 373 insurance must be for a minimum limit of $1 million per 374 occurrence. The insurance must include benefit coverage and 375 negligence liability coverage. Insurance coverage obtained by a 376 QCARE employer must be from an admitted or an approved insurer 377 that is rated A- or higher by A.M. Best Company. 378 (3)Any security held for purposes of compliance with this 379 section serves to guarantee the payment of claims under this 380 chapter. 381 (4)(a)A QCARE employer with a net worth of less than $10 382 million which insures or obtains coverage to be reimbursed for 383 payments under the QCARE employers occupational injury benefit 384 plan or any negligence settlements or awards through an 385 insurance policy that has a self-insured retention of the 386 greater of $50,000 or 1.5 percent of net worth per occurrence is 387 deemed to have fully insured the QCARE employers compensation 388 obligation. 389 (b)A QCARE employer with a net worth of $10 million or 390 more which insures or obtains coverage to be reimbursed for 391 payments under the QCARE employers occupational injury benefit 392 plan or any negligence settlements or awards through an 393 insurance policy that has a self-insured retention of the 394 greater of $500,000 or 1.5 percent of net worth per occurrence 395 is deemed to have fully insured the QCARE employers 396 compensation obligation. 397 (c)A QCARE employer identified in paragraph (a) or 398 paragraph (b) is not required to post any security deposit with 399 or provide any financial data to the Office of Insurance 400 Regulation. 401 Section 6.Section 440.067, Florida Statutes, is created to 402 read: 403 440.067Taxation of benefits of a qualified compensation 404 alternative employer.For purposes of state and federal 405 taxation, all benefit payments made by a QCARE employer are 406 deemed amounts received under a workers compensation law as 407 compensation for personal injury or sickness. 408 Section 7.Section 440.068, Florida Statutes, is created to 409 read: 410 440.068Benefit plan disputes.A QCARE employer shall 411 obtain approval from the insurance carrier selected in 412 accordance with s. 440.066 for claims administration. Subject to 413 insurance carrier approval, the QCARE employer may self 414 administer or use a third-party claims administrator to 415 administer claims, provided that all claims and appeals for 416 benefits must be adjudicated by the claims administrator in 417 accordance with the applicable fiduciary, enforcement, reporting 418 and disclosure, and claims administration laws and regulations 419 of the Employee Retirement Income Security Act of 1974, as 420 amended. 421 Section 8.Subsection (4) of section 440.14, Florida 422 Statutes, is amended to read: 423 440.14Determination of pay. 424 (4)Upon termination of the employee or upon termination of 425 the payment of fringe benefits of any employee who is collecting 426 indemnity benefits pursuant to s. 440.15(2) or (3), the employer 427 shall within 7 days after of such termination file a corrected 428 13-week wage statement reflecting the wages paid, as provided in 429 s. 440.02(41), and the fringe benefits that had been paid to the 430 injured employee, as provided in s. 440.02(40). 431 Section 9.Paragraph (a) of subsection (1) of section 432 440.385, Florida Statutes, is amended to read: 433 440.385Florida Self-Insurers Guaranty Association, 434 Incorporated. 435 (1)CREATION OF ASSOCIATION. 436 (a)There is created a nonprofit corporation to be known as 437 the Florida Self-Insurers Guaranty Association, Incorporated, 438 hereinafter referred to as the association. Upon incorporation 439 of the association, all individual self-insurers as defined in 440 ss. 440.02(34)(a) and 440.38(1)(b) ss. 440.02(33)(a) and 441 440.38(1)(b), other than individual self-insurers which are 442 public utilities or governmental entities, shall be members of 443 the association as a condition of their authority to 444 individually self-insure in this state. The association shall 445 perform its functions under a plan of operation as established 446 and approved under subsection (5) and shall exercise its powers 447 and duties through a board of directors as established under 448 subsection (2). The association shall have those powers granted 449 or permitted corporations not for profit, as provided in chapter 450 617. The activities of the association shall be subject to 451 review by the department. The department shall have oversight 452 responsibility as set forth in this section. The association is 453 specifically authorized to enter into agreements with this state 454 to perform specified services. 455 Section 10.This act shall take effect September 1, 2026.