Florida charges seven in a $100M workers' comp scheme

Florida authorities charged seven people in what they describe as a $100 million workers' compensation payroll scheme, following a multi-year investigation with state and local law enforcement. According to Insurance Journal's report, the operation paid construction workers in cash so the payroll never showed up on the books, which let the businesses involved avoid the premiums that payroll should have generated.

This is not a victimless accounting story. Workers' comp premiums are set off payroll and claims experience across the market, so payroll hidden by one operator gets made up by everyone reporting honestly. If you run a contracting or trade business in Florida, two habits protect you: verify that every sub you hire carries their own active workers' comp coverage, and keep the certificates on file. An uncovered sub who gets hurt on your job can end up on your policy at audit, and that bill arrives long after the job is closed out.

An independent agent can audit your certificate tracking, confirm your class codes match the work you actually do, and re-shop your workers' comp before renewal.