Tag Archives: Minimum Wage

Florida Raises Minimum Wage

Effective January 1, 2021, Florida’s minimum wage rate will increase from $8.56 per hour to $8.65 per hour. Florida’s minimum wage law applies to all employees in the state of Florida who are covered by the federal minimum wage law. For “tipped employees” who meet eligibility requirements for the tip credit under the federal Fair Labor Standards Act (FLSA), employers may take a “tip credit” of up to $3.02 per hour for tips received by the employee. However, they must still pay employees a direct wage. The direct hourly wage for tipped employees in Florida for 2021 is $5.63 (the 2021 Florida minimum wage rate ($8.65) minus the federal tip credit ($3.02)). Both Florida’s minimum wage rate and the direct hourly wage rate for tipped employees are higher than the federal rates, so Florida employers must pay employees the higher Florida rates.

In addition, in November 2020, Florida voters passed Amendment 2 by a constitutional referendum. Effective September 30, 2021, Florida’s minimum wage will rise from $8.65 to $10 an hour and increase $1 every year until it reaches $15 per hour on September 30, 2026. Starting September 30, 2027, Florida’s minimum wage rate will be adjusted annually for inflation.

If employers have not already done so, they should make appropriate pay adjustments for their minimum wage earners. Employers who must pay their employees the Florida minimum wage must post a notice of the state minimum wage requirement (besides posting a notice as required by the FLSA) in a conspicuous and accessible location. The Florida notice is available online.

Florida’s 2020 Minimum Wage Increase

On January 1, 2020, Florida’s minimum wage increased from $8.46 to $8.56 an hour ($12.84 for overtime). If employers have not already done so, they should make appropriate pay adjustments for their minimum wage earners. Employers with minimum wage employees (including tipped employees) that have already issued their first payroll for the year without this ten-cent adjustment, should remedy any underpayment as soon as possible but no later than the next payroll by providing the pay difference, including any additional overtime, for the prior workweek.

Failing to pay non-exempt employees Florida’s statutory minimum wage can result in claims against employers pursuant to Section 24, Article X of the State Constitution and Section 448.110, Florida Statutes. The maximum tip credit ($3.02) that can be taken by Florida employers with tipped employees will remain the same, but the direct wage paid to tipped employees will increase from $5.44 to $5.54 an hour.

In addition to raising the minimum wage, Florida employers are required to post a minimum wage notice in a conspicuous and accessible location. You can download the 2020 Florida Minimum Wage Notice from the Florida Department of Economic Opportunity’s website. This notice is in addition to the requirement that employers post a notice regarding the federal minimum wage (which has not been increased). There will also be commercially available Florida-specific “all-in-one” posters that satisfy both the federal and state notice requirements.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
941-552-2558

Another Business Resolution: Ensure Your Business Implements Florida’s New Minimum Wage

The next suggested resolution in our series of business resolutions is one that all businesses in Florida should implement, as it is legally required. On January 1, 2019, Florida’s minimum wage will increase from $8.25 to $8.46 an hour. Employers should be prepared to make appropriate pay adjustments for their minimum wage earners. Failing to pay non-exempt employees Florida’s statutory minimum wage can result in claims against employers pursuant to Section 24, Article X of the State Constitution and Section 448.110, Florida Statutes. The maximum tip credit ($3.02) that can be taken by Florida employers with tipped employees will remain the same, but the direct wage paid to tipped employees will increase from $5.23 to $5.44 an hour.

In addition to raising the minimum wage, Florida employers are required to post a minimum wage notice in a conspicuous and accessible location. You can download the 2019 Florida Minimum Wage Notice from the Florida Department of Economic Opportunity’s website. This notice requirement is in addition to the requirement that employers post regarding the federal minimum wage (which has not been increased). There will also be commercially available Florida-specific “all-in-one posters” that satisfy both the federal and state notice requirements.

In case you missed it, our first business resolution of this series covered employee performance management.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
(941) 552-2558

Florida’s Minimum Wage Is Set to Increase: What Are You Doing New Year’s Eve?

It is only October and across the state, in department stores not named Nordstrom, holiday decorations are appearing. It may seem that, like these stores, reporting to you that on January 1, 2018, Florida’s minimum wage will increase, may be premature. But, like the holidays, the new minimum wage will be here before you know it. If you are not prepared, then you may be updating your payroll on New Year’s Eve.

Great, now I have Harry Connick Jr’s melancholy version of the 1947 classic by Frank Loesser stuck in my head (and it’s only October):

Maybe it’s much too early in the game
Ooh, but I thought I’d ask you just the same
What are you doing New Year’s
New Year’s Eve?

On January 1, 2018, Florida’s minimum wage will increase from $8.10 to $8.25 an hour. Employers should be prepared to make adjustments to their minimum wage earners. Failing to pay non-exempt employees Florida’s statutory minimum wage can result in claims against employers pursuant to Section 24, Article X of the State Constitution and Section 448.110, Florida Statutes. The maximum tip credit ($3.02) that can be taken by Florida employers with tipped employees will remain the same, but the direct wage paid to tipped employees will increase from $5.08 to $5.23 an hour.

In addition to raising the minimum wage, Florida employers are required to post a minimum wage notice in a conspicuous and accessible location. Before the beginning of 2018 you will be able to download the 2018 Florida Minimum Wage Notice from the Florida Department of Economic Opportunity’s website. This notice requirement is in addition to the requirement that employers post regarding the federal minimum wage (which has not been increased). There will also be commercially available Florida-specific “all-in-one posters” that satisfy both the federal and state notice requirements. The 2018 “all-in-one” posters should also be available in the near future.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
(941) 552-2558

A Successful Challenge to Local Minimum Wage Ordinances in Florida

With efforts to raise both the federal and state minimum wage meeting lackluster success, advocates of raising the minimum wage have been focusing on effecting change at the local level. In Florida, such efforts have led to ordinances raising the minimum wage in municipalities such as the City of Miami and the City of West Palm Beach. However, on March 27, 2017, a court struck down the City of Miami’s Living Wage Ordinance, finding that it is prohibited by Florida Statute § 218.077, which proscribes a municipality from establishing a minimum wage separate from the state or federal minimum wage. In reaching its decision, the court rejected the City of Miami’s argument that Article X, § 24(f), of the Florida Constitution provides explicit authority for municipalities to enact their own wage ordinances. The City still has time to appeal the decision to Florida’s Fourth District Court of Appeal.

The decision will lend support to challenges to other wage ordinances in the state. In addition, this decision may cull current efforts in other municipalities to increase minimum wages.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
(941) 552-2558

Florida and Several of Its Cities will Ride the 2017 Wave of Minimum Wage Hikes

During the course of 2017, 21 states including Florida, plus the District of Columbia (D.C.), are increasing their minimum wage rates for nonexempt employees. Florida, along with 18 other states, increased its minimum wage as of January 1, 2017. As discussed here, Florida increased its minimum wage to $8.10. Maryland, Oregon and D.C. are set to raise their respective minimum rates in July 2017.

Several cities in Florida are also set to raise minimum wages above Florida’s minimum wage. For example, as of October 1, 2017, the City of West Palm Beach’s minimum wage rises by $1.00 per hour to a new minimum of $14.25, and then to $15 in fiscal year 2018-2019. On January 1, 2018, the City of Miami Beach’s minimum wage is set to increase to $10.31 and ultimately to $13.31 over a four-year cycle. There are other cities in Florida that either have approved or are also contemplating similar increases.

This is an important juncture for Florida employers, especially those who employ low-wage workers affected by the new minimum wage changes, to carefully audit their pay practices to ensure legal compliance. In addition to federal, state and even local minimum wage laws, many Florida counties and cities (for example Miami-Dade, West Palm Beach, and St. Petersburg) have wage theft ordinances designed to protect employees wages. Employee claims alleging violations of local, state, or federal wage and hour laws can be costly and significantly affect a company’s bottom line. Despite minimum wage increases at the state and local level, the federal minimum wage has remained stagnant at $7.25 per hour since 2009. Employers should be aware that where several different minimum wages may apply, the employer must pay the higher wage rate.

2.2% of Florida wage earners, or approximately 187,000 employees, are expected to receive pay raises due to the state minimum wage adjustment. About 4.4 million employees are expected to benefit from state minimum wage increases nationwide.

The states’ minimum wage increases and resultant minimums vary quite dramatically when compared on a national scale. At the low-end, for example, is Florida’s five cents ($0.05) per hour increase which raises the state minimum wage from $8.05 to $8.10. This matches the five cent increase in Alaska (to $9.80), in Ohio (to $8.15 ) and in Missouri (to $7.70). By contrast, at the high-end of the spectrum is Arizona with a $1.95 per hour increase to a new minimum wage rate of $10.00, followed by Maine with a $1.50 per hour increase to a new minimum of $9.00, Washington state with a $1.53 per hour increase to a new minimum of $11, and Massachusetts with a $1.00 per hour increase to a new minimum of $11 per hour.

John M. Hament
jhament@williamsparker.com
(941) 552-2555

Florida’s Minimum Wage Will Increase On January 1, 2017

On January 1, 2017, Florida’s minimum wage will increase from $8.05 an hour to $8.10 an hour.  Even though many employers are currently focused on getting ready for the December 1, 2016, increase in the minimum salary requirement for most white collar exemptions, they should not overlook the increase in the minimum wage to be paid to their non-exempt workers. Failing to pay non-exempt employees Florida’s statutory minimum wage can result claims against employers pursuant to section 24, Article X of the State Constitution and section 448.110, Florida Statutes. The tip credit that can be taken by Florida employers with tipped employees will remain the same, but the direct wage paid to tipped employees will increase from $5.03 to $5.08.

In addition, to raising the minimum wage, Florida employers are required to post a minimum wage notice in a conspicuous and accessible location. You can download the 2017 Florida Minimum Wage Notice from the Florida Department of Economic Opportunity’s website. This notice requirement is in addition to the requirement that employers post regarding the federal minimum wage. There are commercially available Florida specific “all in one posters” that satisfy both the federal and state notice requirements. The 2017 “all in one” posters should be available in the near future.

Jennifer Fowler-Hermes
jfowler-hermes@williamsparker.com
941-552-2558