Florida’s Minimum Wage Will Increase Again on Sept 30th

Florida employers need to prepare for a minimum wage hike to $15 an hour on September 30th. And if you have tipped employees, you’ll need to pay them at least $11.98. This is the last of the annual increases voters approved in 2020. We’ll tell you what’s changing and the steps you should consider taking now to comply.

Here’s What’s New

In November 2020, Florida voters approved a constitutional amendment that gradually increases the state’s minimum wage to $15 per hour for most non-exempt employees by 2026. Notably, the tip credit for Florida hospitality employers that claim it will remain $3.02 per hour, which means you’ll have to cover the extra dollar for tipped employees, too.

The state’s hourly minimum wage increased from $8.65 to $10 in 2021 and has been rising by $1.00 each year on September 30. This September brings the final increase and the following minimum wage requirements:

• $15.00 for most non-exempt employees
• $11.98 for tipped employees

Potential Penalties

All Florida employers are required to comply with the new minimum wage requirement. If an employee is not paid at the required rate, they could be entitled to recover back wages plus damages and attorneys’ fees and costs under the state’s wage theft law and the Florida Minimum Wage Act. In addition, employers found liable for intentionally violating minimum wage requirements could be subject to a $1,000 fine per violation.

What Should You Do Now?

Here’s what you should do to prepare for the new wage rate and stay compliant:

1. Make sure payroll is set up to capture the new minimum wage ahead of the September 30th effective date.

2. Update the required minimum wage poster to reflect the new rate. As a reminder, all employers are required to post federal and Florida employment law posters where they can be easily seen by employees. If you need a copy of the new notices, please reach out to our office.

3. Be aware of local wage theft ordinances. Several counties around the state have their own wage theft ordinances that provide for more relief than the state law. For example, if an employee files a wage theft claim in Miami-Dade County through the county’s Wage Theft Program, employers face paying three times the amount of wages owed to an employee.

4. Check compliance with tip credits and tip pools. Employers that take a tip credit must ensure that tipped employees still receive at least the new minimum wage when tips are included. If your payroll system or tip pool does not properly account for the increase, you could inadvertently invalidate the tip credit and violate wage laws. Review your pay practices and any tip-sharing arrangements to confirm they remain compliant under the new rate.

5. Plan for what comes after 2026. The voter-approved phased increases end with this one, but Florida’s minimum wage won’t stay at $15 indefinitely. The Department of Commerce could make annual inflation adjustments, and we expect minimum wage hikes to make their way onto the ballot again in the near future. Employers should track these developments for both compliance and budgeting purposes.

Florida’s Minimum Wage Will Increase Again on Sept 30th

Florida’s minimum wage will rise yet again on September 30, jumping to $14/hour (and to $10.98 for tipped workers) as part of a series of scheduled increases approved by voters in 2020.

How We Got Here

In November 2020, Florida voters approved a constitutional amendment that gradually increases the state’s minimum wage to $15 per hour for most non-exempt employees by 2026. As a result, the state’s hourly minimum wage increased from $8.65 to $10 in 2021 and has been rising since by $1.00 each year on September 30 ($11 in 2022 and $12 in 2023). The next wage hike will soon take effect and continue rising through 2026, as shown in the schedule below:

• $14.00 on September 30, 2025
• $15.00 on September 30, 2026

Florida’s tipped employees also have received bumps in minimum wages each year since 2021. Just like non-tipped employees, the minimum wage for tipped workers will increase by $1.00 each year through 2026, as shown in the schedule below:

• $10.98 on September 30, 2025
• $11.98 on September 30, 2026

What Should You Do?

All Florida employers are required to comply with the new minimum wage requirement. If an employee is not paid at the required rate, they could be entitled to recover back wages plus damages and attorneys’ fees and costs under the state’s wage theft law and the Florida Minimum Wage Act. In addition, employers found liable for intentionally violating minimum wage requirements could be subject to a $1,000 fine per violation. Here’s what you should do to prepare for the new wage hike and stay compliant:

• Make sure that payroll is set up to capture the new minimum wage.
• Update the required minimum wage poster to reflect the new rate. As a reminder, all employers are required to post federal and Florida employment law posters where they can be easily seen by employees.
• Be aware of local wage theft ordinances. Several counties around the state have their own wage theft ordinances that provide for more relief than the state law. For example, if an employee files a wage theft claim in Miami-Dade County through the county’s Wage Theft Program, employers face paying three times the amount of wages owed to an employee.
• Check compliance with tip credits and tip pools. Employers that take a tip credit must ensure that tipped employees still receive at least the new minimum wage when tips are included. If your payroll system or tip pool does not properly account for the increase, you could inadvertently invalidate the tip credit and violate wage laws. Review your pay practices and any tip-sharing arrangements to confirm they remain compliant under the new rate.
• Look out for future wage hikes. While the increases to minimum wage under the current constitutional amendment end in 2026, we expect another amendment will make its way onto the ballot before then and potentially increase the minimum wage further. Employers must be mindful of these increases for both compliance and budgeting purposes.

Florida Will Soon Be Friendliest State in Country For Enforcing Non-Compete Agreements

Florida will soon be a place where businesses can operate with more peace of mind, thanks to a new law that will make it the most enforcement-friendly state in the country for non-compete and garden leave agreements. The “Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act,” passed both the Florida House and Senate on April 24 and expected to be signed by Governor DeSantis, will reshape the state’s laws on restrictive covenants starting on July 1, 2025. The Act does not amend any current statutes, but instead provides more certainty to employers looking to enforce certain non-compete agreements and agreements offering “garden leave” (a period of time where an employee is not required to perform any work but is still paid their salary and benefits in return for not accepting employment elsewhere). Here is what employers should know about the CHOICE Act and three steps you can take to prepare.

Overview of the CHOICE Act

While many federal and state regulatory efforts seek to curb non-compete agreements, the CHOICE Act goes the other direction and creates a presumption that “covered” non-compete agreements and garden leave provisions are enforceable and do not violate public policy. Importantly, the law requires courts to issue an injunction unless the former employee or poaching employer can prove the new employment will not result in unfair competition.

Who is Covered?

The Act defines a “covered employee” as any employee or contractor who works primarily in Florida or works for an employer with their principal place of business in Florida who earns or is reasonably expected to earn a salary greater than twice the annual mean wage of either:

• the county where the company has its principal place of business; or
• the county where the employee resides if the employer’s principal place of business is not in the state.

Notably, “salary” does not include discretionary incentives or awards or anticipated but indeterminable compensation, like bonuses or commissions. The Act excludes from this definition any person classified as a “healthcare practitioner” under Florida law.

What Agreements Are Covered?

The new law covers two types of agreements:

 Type 1- Garden Leave Agreements

A garden leave agreement will be fully enforceable provided that:

1. The employee is advised, in writing, of the right to seek counsel prior to executing the agreement and has at least seven days to review the agreement before execution;
2. The employee and employer agree to provide up to four years advance, express notice before terminating employment (e.g., the “notice period”);
3. The employer agrees to pay the employee their regular base salary and benefits for the duration of the notice period;
4. The employee acknowledges, in writing, that in the course of their employment, the employee will receive confidential information or information about customer relationships;
5. The garden leave provisions provide that:
   • After the first 90 days of the notice period, the covered employee does not have to provide services to the covered employer;
   • The covered employee may engage in nonwork activities at any time, including during normal business hours, during the remainder of the notice period; and
   • The covered employee may, with the permission of the covered employer, work for another employer while still employed by the covered employer during the remainder of the notice period.

Type 2- Non-Compete Agreements

Likewise, a non-compete agreement will be fully enforceable provided that:

1. The employee is advised, in writing, of the right to seek counsel prior to executing the agreement and has at least seven days to review the agreement before signing;
2. The employee acknowledges, in writing, that in the course of their employment, the employee will receive confidential information or information about customer relationships;
3. The employee agrees not to assume a role with or for another business in which the employee would provide services similar to the services provided to the covered employer during the three years preceding the non-compete period, or in which it is reasonably likely the employee would use confidential information or customer relationships;
4. The non-compete period does not exceed four years; and
5. The non-compete period is reduced day-for-day by any non-working portion of the notice period pursuant to a covered garden leave agreement, if applicable.

Notably, there are no restrictions on the geographic scope of a covered non-compete agreement. 

What Else?

• Employers may introduce these agreements either at the beginning of employment or during the course of employment, provided that the employee still has seven days to consider signing the agreement before the offer of employment (or continued employment) expires.
• Employers may also elect to shorten a period of garden leave at their discretion by providing the employee with 30 days’ advanced written notice.
• The bill also states that, if the covered employer has a principal place of business in Florida and uses a covered agreement expressly governed by Florida law, then “if any provision of this section is in conflict with any other law, the provisions of this section govern.” What happens if the employee of such a covered employer lives in a state that bans non-compete agreements outright, like California? This situation is very likely to play out in the courts, and it may come down to where the first suit is filed.

Remedies Available

Of course, drafting and executing these agreements means very little if employers have to jump through hoops to enforce them. However, the CHOICE Act makes obtaining an injunction against a breaching employee a lot less burdensome because it requires courts to issue a preliminary injunction against a covered employee.

A judge may only modify or dissolve the injunction if the covered employee – or prospective employer – proves by clear and convincing evidence (which must be based on non-confidential information) that:

• the employee will not perform similar work during the restricted period or use confidential information or customer relationships;
• the employer failed to pay the salary or benefits required under a covered garden leave agreement, or failed to provide consideration for a non-compete agreement, after the employee provided a “reasonable opportunity” to cure the failure; or
• the prospective employer is not engaged in (or preparing to engage in) a similar business as the covered employer within the restricted territory.

If the employee engages in “gross misconduct” against the covered employer, the covered employer may reduce the salary or benefits of the covered employee or “take other appropriate action” during the notice period, which would not be considered a breach of the garden leave agreement.

3 Key Steps For Employers

Assuming this bill is signed into law, Florida will become by far the most enforcement-friendly state in the country for non-competes and garden leave provisions starting July 1, 2025. (Arguably, it already was, but this law would go substantially further than the current Florida restrictive covenants statute.) Employers should prepare for this new day by considering the following three steps:

• Review existing agreements and consider whether your agreements need to be modified to comply with the Act’s definition of a “covered” garden leave or non-compete agreement.
• Understand that restrictive covenants can still be used and enforced against employees who earn less than two times the mean salary for the applicable county. However, employers will not have an entitlement to a preliminary injunction without proving a legitimate business interest and irreparable harm.
• It is always a good practice to review your company’s confidentiality protocols and make sure your policies regarding trade secrets, customer information, and confidential information are comprehensive, up to date, and legally compliant. While the CHOICE Act only requires that the employee acknowledge access to confidential information, the more guardrails in place, the better.

FL Minimum Wage Increase in September 2023

Reminder- Florida’s minimum wage will increase to $12.00 per hour on September 30, 2023. The direct wage for tipped employees will also increase to $8.98 per hour. Be sure to update your minimum wage poster(s) before September 30, 2023. Please let us know if you need copy of the updated poster(s).

FL Minimum Wage Increase in September 2022

Florida Governor Amends Safer-At-Home Order And Announces Plan To Reopen State

Florida Governor Ron DeSantis just extended his Safer At Home Order for the State of Florida but announced his plan to gradually re-open the state pursuant to a new Order that will go into effect just after midnight (at 12:01 am) on the morning of May 4, 2020. The new Order initiates the first of three phases to re-open every county in Florida except for Miami-Dade, Broward and Palm Beach counties. Additionally, local governments in Florida will also be able to have more restrictive policies in place if they desire. What do Florida employers need to know?

Essential And Non-Essential Businesses Are Permitted To Operate Pursuant To CDC And OSHA Guidelines

The new Order permits all services and activities currently allowed under the previous Safer-at-Home Order. Any non-essential businesses that were not previously permitted to be open can reopen as long as they also follow CDC and OSHA guidelines. However, The Order contains the following industry specific restrictions:

• Schools: Schools will remain closed during Phase One and can continue conducting distance learning.
• Healthcare: Hospitals and senior living facilities are prohibited to have visitors, and those interacting with residents and patients must adhere to strict protocols regarding hygiene. However, elective surgeries can resume, as clinically appropriate at facilities that adhere to Centers for Medicare & Medicaid Services (CMS) guidelines. Additionally, any facility that performs elective procedures must be able to immediately convert for treatment of COVID-19 patients in a surge capacity situation, must have adequate PPE, has not sought government assistance regarding PPE supplies since resuming elective procedures, and has not refused to provide support to and proactively engage with skilled nursing facilities, assisted living facilities, and other long term care residential providers.
• Hospitality: Sit-down dining establishments can operate at 25% occupancy under strict physical distancing protocols. However, bars will remain closed.
• Retail: Storefronts may operate at no more than 25% of their building occupancy.
• Museums and libraries: Can operate at no more than 25% of their building occupancy if permitted by local government. Also, any interactive functions or exhibits including child play areas must remain closed.
• Miscellaneous: Gyms, movie theatres, and professional services (such as hair salons and barbershops) will remain closed.

Every business is required to continue to follow guidelines issued by the CDC and OSHA. These guidelines include:

• Promoting healthy hygiene practices;
• Intensifying cleaning, disinfection (e.g., small static groups, no large events);
• Avoiding non-essential travel, and encouraging alternative commuting and telework;
• Spacing out seating (more than 6 feet) and staggering gathering times;
• Restricting use of any shared items and spaces; and
• Training all staff in above safety-actions.

The CDC also recommends that businesses only reopen after they have implemented safeguards for the ongoing monitoring of employees, including:

• Encouraging employees who are sick to stay home;
• Establishing routine, daily employee health checks;
• Monitoring absenteeism and having flexible time off policies;
• Having an action plan if a staff member gets COVID-19;
• Creating and testing emergency communication channels for employees; and
• Establishing communication with state and local health authorities.

Senior Citizens And Individuals With Significant Underlying Medical Conditions

The Order strongly encourages individuals who are older than 65 and those with significant underlying medical conditions to stay at home. They should take all measures to limit the risk of exposure to COVID-19 such as wearing masks during face-to-face interactions. Additionally, the Order encourages individuals to avoid socializing in groups of more than 10.

Social Distancing And Other Guidelines

Additionally, all persons in Florida should practice social distancing, avoid nonessential travel, and adhere to guidelines from the CDC regarding isolation for 14 days following travel on a cruise or from any international destination and any area with significant presence of COVID-19. The Order also extends Governor DeSantis’ Orders regarding airport screening and isolation of individuals traveling to Florida. Notably, there is an exception for these orders for persons involved in military, emergency, health or infrastructure response or involved in commercial activity.

Criminal Penalties

A violation of the Order is a second-degree misdemeanor which is punishable by imprisonment not to exceed 60 days, a fine not to exceed $500.00 or both.

What Does This Mean For Employers?

Employers with operations in Florida should review the CISA guidance and Miami-Dade County Emergency Order 07-20, and its amendments, to determine if they are deemed essential or non-essential.  

Before reopening, you should have a thorough plan in place to establish a safe and healthy workplace and share that plan to provide employees peace of mind. You should also be prepared to address concerns from older employees and those with underlying significant health conditions regarding whether or not they must come in to work. You should also carefully assess the availability of telework for these employees.

As you begin the process of reopening, you should familiarize yourself with some useful info: 

• 5 Steps To Reopen Your Workplace, According To CDC’s Latest Guidance. 

• 4-Step Plan For Handling Confirmed COVID-19 Cases When Your Business Reopens 

Florida’s Minimum Wage Increased as of January 1, 2020

Florida raised its minimum wage to $8.56 an hour beginning Jan. 1, 2020, up 10 cents from $8.46 in 2019. For tipped employees, the minimum wage will be at least $5.54 an hour.

The minimum wage rate is recalculated each year on Sept. 30, based on the Consumer Price Index. 

Employer found liable for intentionally violating minimum wage requirements are subject to a fine of $1000 per violation, payable to the state in addition to potential civil action law suit. 

Be sure to update your required Florida Minimum Wage Posting to reflect this change. You can download a copy of the new poster here.

Florida’s Minimum Wage to Increase on January 1, 2018

Florida is raising its minimum wage to $8.25 an hour beginning Jan. 1, up 15 cents from $8.10 in 2017. For tipped employees, the minimum wage will be at least $5.23 an hour.

The minimum wage rate is recalculated each year on Sept. 30, based on the Consumer Price Index. 

Employer found liable for intentionally violating minimum wage requirements are subject to a fine of $1000 per violation, payable to the state in addition to potential civil action law suit. 

Be sure to update your required Florida Minimum Wage Posting to reflect this change. You can download a copy of the new poster here.

Florida’s Minimum Wage to Increase on Jan 1, 2017

Florida is raising its minimum wage to $8.10 an hour beginning Jan. 1, up 5 cents from $8.05 in 2016, the state Department of Economic Opportunity has announced. For tipped employees, the minimum wage will be at least $5.08 an hour.

The minimum wage rate is recalculated each year on Sept. 30, based on the Consumer Price Index. In 2016, the state’s minimum wage was unchanged from the previous year.

Be sure to update your required Florida Minimum Wage Posting to reflect this change. You can download a copy of the new poster here.

Mandatory Florida Posting Change

The State of Florida has updated its Discrimination poster to include pregnancy as a protected class. The state’s Civil Rights Act was amended earlier this year to prohibit discrimination on the basis of pregnancy. This amended law took effect July 1st and you are required to post this revised notice. Be sure to check your postings to make sure you have the updated notice posted. Please contact out office if you need a copy of the updated notice.