15 September 2022 Show
Ogletree, Deakins, Nash, Smoak & Stewart
 To print this article, all you need is to be registered or login on Mondaq.com. On September 30, 2022, the minimum wage in Florida will increase from $10 per hour to $11 per hour for standard employees and from $6.98 per hour to $7.98 per hour for tipped workers. This increase is part of the state's plan to raise the rate to $15 per hour by 2026. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. POPULAR ARTICLES ON: Employment and HR from United States An Updated Federal Overtime Rule: When's It Coming? Proskauer Rose LLP Twice a year (in the spring and the fall), each federal agency publishes a "Regulatory Agenda" that discloses the proposal and final rules it has recently issued, together with those that it plans... A Bad Boss Bonus? Mintz Today's news about Twitter's sale and the tidying up of its executive suite highlights a little-discussed and poorly understood compensation practice: the retention bonus. You may have heard that Florida’s minimum wage is going up to $15 per hour, and that’s true. However, it’s not going to increase all at once. Instead, the minimum wage in Florida will increase by one dollar each year until it reaches $15 in 2026. Florida voters decided this in 2020 via Amendment 2 to the state constitution. What does that mean for you? Let’s start with the current year, i.e., 2022. Effective September 30, 2022, Florida’s minimum wage is $11 per hour for workers that don't earn tips and $7.98 per hour for tipped workers—since it's assumed they'll make up the rest in tips. That's an increase of $1 per hour for both types of workers. Florida’s state minimum wage will continue to increase until it hits $15.00 per hour in 2026 for standard workers and $11.98 for tipped workers. Here's the full schedule: Florida's Minimum Wage Increase Schedule
Since Florida follows the federal “time and a half” policy for overtime, the overtime rate is $16.50 per hour for standard workers and $13.48 per hour for tipped workers, effective September 30, 2022. Overtime rates apply to hours worked after an employee has already clocked in 40 hours for the week. Here's the full increase schedule: Florida's Overtime Minimum Wage Increase Schedule Minimum Wage After 2026Starting in 2027, the state will go back to using inflation rates to adjust its minimum wage. The Department for Economic Opportunity will use the Consumer Price Index for Urban Wage Earners and Clerical Workers to figure out future minimum wage increases. What does that mean for you? The minimum wage rates can still change in 2027 as long as inflation keeps going up. That said, Florida’s law requires that the state government post changes and effective dates on its website by Oct. 15 of each year. You can find those changes on the Florida Department of Economic Opportunity or Department of Revenue pages. You can also add yourself to the state’s Reemployment Assistance Database if you want to receive written notice of changes. The state has to mail them by Nov. 15 of each year. How Much Does a Minimum-Wage Worker in Florida Earn Each Year?Now that you know about the minimum wage changes in 2022, let’s see how much a full-time employee earning minimum wage will make in Florida once the rate goes up. Someone working 40 hours per week at a rate of $11.00 per hour will earn: Example of New Minimum Wage Pay Florida doesn’t have a state income tax, but you still need to withhold a portion of each employee’s wages for federal income tax and FICA taxes (Medicare and Social Security taxes). If you offer benefits, such as retirement plans or health insurance, you will also have to subtract those voluntary contributions from your employee’s gross wages each time you run payroll. Keeping track of these mandatory and voluntary withholdings can become a hassle. Hourly payroll software automatically calculates payroll deductions and workers’ comp expenses to make your life easier. Minimum Wage CalculatorYou can use the minimum wage calculator to see how much a part-time employee or someone working overtime would make. Who Else is Raising Their Minimum Wage?Florida is one of the 25 states scheduled to increase their minimum wage in 2022. Here are the others:
Now that we answered your burning question, let’s take a closer look at what'll happen in the coming years. Comparing Federal Minimum Wage with Florida’sSo, how does Florida’s hourly minimum wage compare to the federal rate? It’s higher. The federal minimum wage is set by the Fair Labor Standards Act (FLSA) at $7.25 per hour for covered non-exempt employees. This rate only applies in states that don’t have their own minimum wage (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee). If you’re an employer in Florida, you can’t cherry-pick which rate to use. You always have to pay the higher minimum wage, which—in this case—is the state’s. However, some types of employees are exempt from the minimum wage depending on factors like age or student status. Minimum Wage Exemptions and Subminimum Wage CategoriesThe minimum wage doesn’t apply to all employees. Florida has some exemptions and subminimum wage categories that let you pay people less than minimum wage. Let’s take a closer look. Employees Under 20According to the FLSA, you can pay new employees under 20 an hourly wage of $4.25 for the first 90 days, which is treated as a training period. The 90 days start with their first day of work, and you have to pay them the regular rate after it ends. You can check out the Department of Labor’s Youth Minimum Wage Fact Sheet for more information. Student WorkersFlorida also follows FLSA guidelines that allow certain employers, such as in college work-study programs, to pay student workers less than minimum wage. The lower rate applies to high school students working full time and college students working part time. You can pay them 85% of the current minimum wage (at least $9.35 if the minimum wage is $11.00) for up to 20 hours per week. The Federal Fair Labor Standards Act also has rules for compensation in Student-Learner programs. If you hire a high-school student over the age of 16 who is in a “shop course” (a vocational course or trade school), they can be paid at 75% of the minimum wage ($8.25 when the minimum hourly rate is $11.00) while still in the program. Tipped Minimum WageIf you have tipped employees (people who earn more than $30 per month in tips), such as servers or bartenders, you can pay a tipped minimum wage. In Florida, you can take a $3.02 tip credit. This means that the tipped minimum wage is the regular rate minus $3.02. Here’s how that breaks down each year: Tipped Minimum Wage in Florida
Still, an employee’s total pay must be at least what they would earn if they made minimum wage. For example, let’s say you have a waiter named Josh you pay bi-weekly. In two weeks, he works 60 hours. If the minimum wage is $11.00, his total pay (what you pay + his tips) has to be at least $660.00 (which is what he would have earned if you paid the full minimum wage). So, if you pay him $7.98 per hour, that’s a total of $487.80. Josh has to earn at least $181.20 in tips during those two weeks. If he doesn’t, you have to make up the difference so he makes at least minimum wage. Disabled WorkersFlorida follows the FLSA guidelines for employees with disabilities. The federal law says you can pay an employee with disabilities a subminimum wage (a rate lower than the minimum) if you have a subminimum wage certificate for workers with disabilities. The government does this to ensure disabled people can get opportunities to find work. If you want to apply for a certificate, you can call the U.S. Department of Labor Wage and Hour at (312) 353-3809 or mail them at: U.S. Department of Labor Wage and Hour 230 South Dearborn Street Room 562A Chicago, IL 60604 Florida Laws About Unpaid Minimum WageAs a Florida employer, you are required to display the Federal and Florida Employment posters in a visible area of your workplace. And if you pay your employees less than minimum wage—say you forgot to update your payroll information after a Sep. 30 deadline—your employees have the right to claim unpaid minimum wage (including unpaid overtime) through a civil action in court. An employee that wants to claim wages has to notify you in writing before filing a suit. The notification needs to include the work dates, hours, and total amount of unpaid wages. As the employer, you have a 15-day safe harbor period once you receive a notice to pay the wages before a claim gets made in court. After 15 days, the employee can go to court. Make Compliance Easy with Payroll SoftwareAs an employer, you want to do right by the people who work for you. But, when compensation laws change, it can be hard to keep up. Now that you know about Florida’s minimum wage increases, make sure to mark your payroll calendars so you get it right the first time. Or, to make it even easier, choose payroll software like Hourly that has automatic features in place to help you stay compliant. DO waiters make minimum wage in Florida?Effective September 30, 2022 the minimum wage in Florida increased to $11.00 an hour, and the required cash wage for tipped employees increased to $7.98. All Florida employers are required to post the current minimum wage in their place of business where an employee can see it.
How much do servers make in Florida with tips?Minimum Wages for Tipped Employees. Do tipped employees get overtime Florida?Tipped employees can qualify for overtime in Florida. However, the law that plays the largest role in your qualification for overtime is the Federal Wages & Fair Labor Standards Act (FLSA). The FSLA establishes minimum wage, overtime pay, and employment standards for both government and private sector employees.
What is a tipped employee in Florida?Tip pooling includes employees who usually and regularly earn more than $30 per month in tips. This includes servers, bartenders, and bussers. Tip sharing, on the other hand, includes employees who do not usually and regularly receive tips, such as cooks, dishwashers, chefs and bakers.
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