Tag: florida minimum wage

Florida’s New $10 Minimum Wage Poster

By Anita Byer, Setnor Byer Insurance & Risk

Florida’s new $10 minimum wage poster is now available! Just in time too, because the largest minimum wage increase in Florida history is here. On September 30, 2021, Florida’s minimum wage will increase to $10 per hour. But that’s not the only thing that’s changing. In addition to making any necessary payroll adjustments, employers must also update their Florida minimum wage posters to reflect the new minimum wage.

Download the Florida Department of Economic Opportunity’s $10 Minimum Wage Poster.

Florida law requires employers to notify employees of their right to be paid no less than the minimum hourly wage and what they can do if their employer fails to do so. Employers can satisfy this notice requirement by posting the Department of Economic Opportunity’s “Notice to Employees – Minimum Wage in Florida.” But this notice can’t just be posted. It must be posted correctly.

  • The poster must be posted prominently in a conspicuous and accessible place in each establishment where minimum wage employees are employed.
  • The poster must be at least 8.5 inches by 11 inches and in a format easily seen by employees.
  • The text in the poster must be of a conspicuous size.
  • The text in the first line must be larger than the text of any other line.
  • The text of the first sentence must be in bold type and larger than the text in the remaining lines.

Remember that $10 per hour is just the first minimum wage increase required by the constitutional amendment approved by Florida voters. It will increase by $1 annually until it reaches $15 per hour on September 30, 2026. The annual adjustments for inflation are scheduled to resume in 2027. Employers must update their minimum wage posters annually to remain compliant with Florida law.

To reduce the likelihood of costly mistakes, employers should provide wage and hour training to managers and supervisors. Employers should also carry Employment Practices Liability Insurance with limited coverage for wage and hour claims. Contact us to learn more about protecting your business with Employment Practices Liability Insurance.

Largest Minimum Wage Increase in Florida History is Less than Six Months Away

When Florida enacted its own minimum wage in 2005, the minimum hourly wage went up $1. Despite going up every year since, this is still the largest single increase in Florida history…for now. On September 30, 2021, Florida’s minimum wage will go from $8.65 to $10, an increase of $1.35 per hour. In other words, Florida employers have less than six months to prepare for the largest minimum wage increase ever.

Depending on workforce make-up, the resulting increase in payroll expense may be minimal for some and substantial for others.

The upcoming increase is required by the $15 Minimum Wage Ballot Initiative (Amendment 2), which was approved by Florida voters in November 2020. Amendment 2 increases Florida’s minimum wage incrementally over a period of years until it reaches $15 per hour. The first (and largest) increase will occur September 30, 2021. It will then increase annually on September 30th per the following schedule.

  • 2021       $10.00
  • 2022        $11.00
  • 2023        $12.00
  • 2024        $13.00
  • 2025        $14.00
  • 2026        $15.00
  • 2027        Annual adjustments for inflation resume.

As of September 30, 2021, a minimum wage employee working full-time will need to be paid an additional $54 per week. Depending on the workforce make-up, the resulting increase in payroll expense may be minimal for some and substantial for others. Employers should start planning now to avoid unintentional, unnecessary and costly wage and hour violations. These plans should extend beyond this year’s record-breaking increase. There will be five more increases under Amendment 2, each of which is large enough to tie the current record for largest single increase in Florida history.

To reduce the likelihood of costly mistakes, employers should provide wage and hour training to managers and supervisors. Employers should also carry Employment Practices Liability Insurance with limited coverage for wage and hour claims. Contact us to learn more about protecting your business with Employment Practices Liability Insurance.

FLSA Update: New White-Collar Exemption Rules Permit “Catch-Up” Payment to Satisfy Minimum Salary Requirement

The Fair Labor Standards Act’s new white-collar exemption regulations did more than increase the minimum salary requirement for exempt executive, administrative and professional employees from $455 to $684 per week. They also let employers use nondiscretionary bonuses, incentives and commissions to satisfy up to 10 percent of the minimum salary requirement.

In other words, if an exempt employee’s annual salary, including nondiscretionary bonuses, incentives and commissions, is less than $35,568 at the end of the year, employers may make one final payment of up to $3,556.80 to satisfy the minimum salary requirement for that employee. These “catch-up” payments are subject to the following rules.

  • Employers may only use nondiscretionary bonuses, incentives and commissions that are paid annually or more frequently.
  • Employers may utilize any 52-week period as the year (calendar year, fiscal year, hire-date anniversary, etc.).
  • If an employer does not identify a specific 52-week period in advance, the calendar year will apply.
  • The “catch-up” payment must be made no later than the next pay period after the end of the year.
  • If the “catch-up” payment is made after the end of the 52-week period, it may count only toward the prior year’s salary amount and not toward the salary amount in the year it was paid.

According to the Department of Labor, this change was made in recognition of evolving compensation practices in a growing number of workplaces. “Catch-up” payments are not required, but many employers are expected to take advantage of the new rule. The new white-collar exemption regulations are effective January 1, 2020, so employers don’t have much time to evaluate their current payroll practices and take corrective actions if necessary.

Regulatory changes often create uncertainty, so employers should carry Employment Practices Liability Insurance that includes limited wage & hour coverage. Please contact us if you would like to learn more about employment practices liability insurance.

Florida’s Minimum Wage Going Up In 2020

On January 1, 2020, Florida’s minimum wage will increase by ten cents to $8.56 per hour. The minimum wage for tipped employees, which is in addition to tips, will also increase by ten cents to $5.54 per hour. Florida’s Minimum Wage Act applies to those employees entitled to receive the federal minimum wage under the Fair Labor Standards Act. Employers must pay no less than the federal minimum wage or their state’s minimum wage, whichever is higher.

Florida’s minimum hourly wage is adjusted annually for inflation. According to the Florida Supreme Court, only upward adjustments are permitted. Since 2005, Florida’s minimum wage has gone up $2.41. Florida’s 2020 minimum hourly wage remains higher than the current federal minimum hourly wage of $7.25.

Florida employers must make employees aware of their rights by prominently displaying a minimum wage poster in a conspicuous and accessible place wherever minimum wage employees are employed. Employees can sue for violations of Florida’s Minimum Wage Act, but they must first provide their employer written notice of their intent to sue, which must:

  • identify the minimum hourly wage to which the employee claims entitlement;
  • provide the actual or estimated work dates and hours for which payment is sought; and
  • state the total amount of alleged unpaid wages.

Employers then have 15 calendar days to pay all unpaid wages or resolve the claim to the employee’s satisfaction. Otherwise, the employee may file a lawsuit. The Florida Attorney General can also bring a civil action against employers. Each willful violation can result in a $1,000 fine.

Dealing with state and federal wage and hour laws can be hard. To protect against employment practices liability claims, employers should implement a training program and explore their options for insuring against wage and hour claims.

Please contact us for more information about protecting your business from employment-related liabilities.