Tag: Minimum Wage

Florida’s Minimum Wage Increasing to $10 Per Hour on September 30

By Anita Byer, Setnor Byer Insurance & Risk

The largest minimum wage increase in Florida history is just weeks away! On September 30th, Florida’s minimum wage will increase to $10 per hour. That’s $1.35 more per hour than the current minimum wage and $1.44 more than last year’s minimum wage. A quick peak at the calendar confirms that employers have plenty of very little time left to prepare for this historic wage increase.

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. Nevertheless, all employers must plan and prepare beforehand to avoid unintentional, unnecessary and costly violations. Employers should also look beyond this year’s record-breaking increase when budgeting for payroll. 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.

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.

Amendment 2: Florida Voters Approve Ballot Initiative to Increase Minimum Wage

Setnor Byer Insurance & Risk

It was too close to call on election day, but Florida’s minimum wage ballot initiative ultimately received enough votes to pass…barely. Florida requires a 60 percent supermajority to amend its constitution. Amendment 2 received 60.82 percent of the votes cast. Despite being razor-thin, this margin is sufficient to amend Florida’ constitutional minimum wage requirements. So, what’s changing?

Amendment 2 increases Florida’s minimum wage incrementally over a period of years until it reaches $15 per hour. The first annual increase, which will be the largest, is scheduled to occur September 30, 2021. Each September 30th thereafter, it will increase by $1.00 until it reaches $15 per hour in 2026.

January 1, 2021                 $8.65

September 30, 2021        $10.00 (+ $1.35)

September 30, 2022        $11.00

September 30, 2023        $12.00

September 30, 2024        $13.00

September 30, 2025        $14.00

September 30, 2026        $15.00

Annual adjustments for inflation, which have taken place since 2005, are scheduled to resume September 30, 2027. Florida’s constitutional minimum wage requirements remain otherwise unchanged by Amendment 2. Employers, for example, are still prohibited from discriminating or retaliating against employees for exercising their constitutional minimum wage rights. They can still be sued by employees and Florida’s Attorney General for violating these rights. These lawsuits are still expensive.

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.

Did You Know…Florida’s Minimum Wage is Going Up in 2019?

Florida’s minimum wage applies to those employees entitled to receive the federal minimum wage under the Fair Labor Standards Act. It is adjusted annually for inflation. According to the Florida Supreme Court, only upward adjustments are permitted.

Employers are required to pay the federal or their state’s minimum hourly wage, whichever is higher. Since Florida’s 2019 minimum hourly wage will be higher than the federal minimum hourly wage of $7.25, Florida employees entitled to minimum wage cannot be paid less than $8.46 per hour.

Florida employers must prominently display a minimum wage poster in a conspicuous and accessible place wherever minimum wage employees are employed. This poster must notify employees of the minimum wage and of their rights and protections under Florida’s Minimum Wage Act.

Employees can sue employers for minimum wage violations, but they must first provide 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.

Upon receiving such notice, an employer has 15 calendar days to pay the total amount of unpaid wages or resolve the claim to the employee’s satisfaction. Otherwise, the employee will be allowed to file a lawsuit for unpaid minimum wages. The Florida Attorney General can also bring a civil action against employers. Each willful violation can result in a $1,000 fine.

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.

Florida’s Minimum Wage Will Be Going Up In 2018

On January 1, 2018, Florida’s minimum wage will be going up fifteen cents to $8.25 per hour. The minimum wage for tipped employees, which is in addition to tips, is also going up fifteen cents to $5.23 per hour. The Florida Minimum Wage Act, which is the result of a 2004 voter-approved amendment to the Florida Constitution, applies to those employees entitled to receive the federal minimum wage under the Fair Labor Standards Act.

Florida’s minimum wage is recalculated annually on September 30th to adjust for inflation. The recalculation is based on the annual percentage change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers for the South Region. The Florida Department of Economic Opportunity is responsible for calculating and posting the new minimum wage.

According to the Florida Supreme Court, only upward adjustments are permitted. Since becoming effective in 2005, Florida’s minimum wage has gone up almost every year.

2005 $6.15 +1.00
2006 $6.40 + .25
2007 $6.67 + .27
2008 $6.79 + .12
2009 $7.21 + .46
2011 $7.31 + .06
2012 $7.67 + .36
2013 $7.79 + .12
2014 $7.93 + .14
2015 $8.05 + .12
2017 $8.10 + .05
2018 $8.25 + .15

Employers are required to pay the federal minimum hourly wage or their state’s minimum hourly wage, whichever is higher. Florida’s 2018 minimum hourly wage of $8.25 remains higher than the federal minimum hourly wage of $7.25.

Florida employers must prominently display a minimum wage poster in a conspicuous and accessible place wherever minimum wage employees are employed. This poster must notify employees of the minimum wage and of their rights and protections under Florida’s Minimum Wage Act.

Employers who violate Florida’s Minimum Wage Act can be sued by their employees. However, employees must first notify their employer, in writing, of their intent to sue. This notice 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.

After receiving such a notice, an employer has 15 calendar days to pay the total amount of unpaid wages or resolve the claim to the employee’s satisfaction. Otherwise, the employee will be allowed to file a lawsuit for unpaid minimum wages. 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 liabilityclaims, 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.

To receive regular updates about developments which may affect your business, please subscribe to Setnor Byer Insurance & Risk’s weekly Risk Management Newsletters.

Florida’s Minimum Wage Will Be Going Up In 2017

On January 1, 2017, Florida’s minimum wage will be going up five cents to $8.10 per hour. The minimum wage for tipped employees, which is in addition to tips, is also going up five cents to $5.08 per hour. The Florida Minimum Wage Act, which is the result of a 2004 voter-approved amendment to the Florida Constitution, applies to those employees entitled to receive the federal minimum wage under the Fair Labor Standards Act.

Florida’s minimum wage is recalculated annually on September 30th to adjust for inflation. The recalculation is based on the annual percentage change in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers for the South Region. The Florida Department of Economic Opportunity is responsible for calculating and posting the new minimum wage.

According to the Florida Supreme Court, only upward adjustments are permitted. Since becoming effective in 2005, Florida’s minimum wage has gone up almost every year.

2005 $6.15 +1.00
2006 $6.40 +0.25
2007 $6.67 +0.27
2008 $6.79 +0.12
2009 $7.21 +0.46
2010 $7.25 —
2011 $7.31 +0.06
2012 $7.67 +0.36
2013 $7.79 +0.12
2014 $7.93 +0.14
2015 $8.05 +0.12
2016 $8.05 —
2017 $8.10 +0.05

Employers are required to pay the federal minimum hourly wage or their state’s minimum hourly wage, whichever is higher. Since Florida’s 2017 minimum hourly wage will be higher than the federal minimum hourly wage of $7.25, Florida employees entitled to minimum wage cannot be paid less than $8.10 per hour.

Florida employers must prominently display a minimum wage poster in a conspicuous and accessible place wherever minimum wage employees are employed. This poster must notify employees of the minimum wage and of their rights and protections under Florida’s Minimum Wage Act.

Employers who violate Florida’s Minimum Wage Act can be sued by their employees. However, employees must first notify their employer, in writing, of their intent to sue. This notice 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.

After receiving such a notice, an employer has 15 calendar days to pay the total amount of unpaid wages or resolve the claim to the employee’s satisfaction. Otherwise, the employee will be allowed to file a lawsuit for unpaid minimum wages. 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. The new white collar overtime exemption regulations will only make things harder. 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.

To receive regular updates about developments which may affect your business, please subscribe to Setnor Byer Insurance & Risk’s weekly Risk Management Newsletters.