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Florida has a detailed set of laws and regulations to guide employer-employee relationships. Overtime is one key area overseen by Florida’s labor laws, and compliance with these laws can mean the difference between a thriving business and one mired in legal challenges and reputational risks.
This detailed guide can help you understand the particulars surrounding Florida overtime laws, covering specific statutes, calculations, penalties, and more. We’ll also explore similarities and differences between Florida law and federal overtime laws to help you better understand your rights and responsibilities when overseeing a multi-state workforce operating in and beyond the Sunshine State.
Let’s dive in.
Understanding Florida Overtime Laws
Florida generally follows federal overtime laws set forth by the Fair Labor Standards Act (FLSA).
According to FLSA, overtime in Florida is any work done after an employee exceeds their 40-hour workweek limit. When employees work more than 40 hours a week, their employer must compensate them with overtime wage payments.
Overtime wage is calculated at 1.5 times an employee’s base pay, but overtime earnings are only available to non-exempt workers.
In Florida, some workers exempt from federal overtime law include:
- Outside sales professionals
- Professionals
- Executives
- Computer employees (software engineers, programmers, or analysts)
- Administrative employees
Professional and executive employees with advanced knowledge and skill sets are generally exempt from FLSA overtime laws. Administrative employees in accounting, quality control, human resources, personnel management, and labor relations roles are also exempt.
Other salaried employees may also be exempt from receiving overtime pay:
- Executives, administrative employees, computer employees, and learned and creative professionals earning at least $684 per week on a salary basis
- Highly compensated employees making at least $107,432 annually, equivalently at least $684 weekly
Some salaried employees are eligible for overtime pay if they:
- Earn less than $684 per week or $35,568 per year
- Earn less than $1,043 per week in the motion picture industry
FLSA does not limit the hours employees aged 16 or older may work in a workweek. Additionally, federal law does not require overtime pay for work on Saturdays, Sundays, holidays, or any other regular day of rest unless company policy stipulates work on those days will count as overtime.
Overtime For Non-Tipped Employees
In Florida, the minimum wage for non-tipped employees is $12 per hour (as of September 30, 2023).
Under the federal overtime rate of 1.5 times the base pay per hour, overtime pay for a minimum-wage worker would be calculated as $12 x 1.5, or $18 per hour.
Overtime For Tipped Employees
Effective September 30, 2023, the minimum wage for tipped employees in Florida is $8.98.
In Florida, individuals who customarily receive at least $30 per month in tips during their employment are considered “tipped employees.” According to federal overtime laws, the amount a tipped employee makes with tips included must equal (or exceed) the standard minimum wage for regular and overtime pay. If combined wages still come in below Florida’s minimum wage rate of $12 an hour ($18 in overtime), the employer must make up the difference.
Multiply the tipped minimum wage by 1.5 to get the tipped overtime rate: $8.98 x 1.5 = $13.47.
Florida employers can claim a “tip credit” against the minimum wage, assuming tips will make up the difference. The maximum tip credit is currently $3.02 per hour (calculated as the full minimum wage minus the tipped minimum wage, or $12 – $8.98 = $3.02).
By subtracting the tip credit from the overtime rate, you’ll arrive at Florida’s effective tipped minimum wage rate: $13.47 – $3.02 = $10.45 per hour.
If an employee earns more than the minimum wage, their employer must use their regular hourly rate for overtime calculations.
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Comparison with Federal Overtime Laws
Florida overtime laws align with federal regulations in many aspects – the state generally defaults to federal law regarding overtime pay. FLSA sets minimum standards for overtime pay across the country of at least one and a half times the regular rate for non-exempt employees who work more than 40 hours a week.
Some key points to consider regarding Florida’s overtime laws and their implications for businesses and employees include:
- Florida overtime calculations mirrors federal specifications.
- Certain occupations are exempt (as defined earlier in this article)
- As florida law doesn’t regulate overtime pay for the workweek, federal standards apply
Employers in Florida must follow federal overtime pay laws, ensuring they pay non-exempt employees at least one and a half times their regular rate for any hours worked over 40 in a workweek.
Non-exempt employees in Florida who work more than 40 hours a week are entitled to overtime pay at a rate of at least one and a half times their regular rate, as mandated by federal law.
This relative simplicity can make it easier for employers based in Florida to comply with overtime laws in multiple states, as they’ll typically only need to follow two sets of laws – federal law set forth in FLSA, and the overtime laws established by other states in which Florida-based employers do business.
Common Misconceptions and Pitfalls
There are a few common misconceptions and pitfalls related to overtime in Florida businesses and employees should be aware of:
Salaried employees are exempt from overtime
Earning a pre-defined salary does not automatically exempt an employee from overtime pay. Exemption status depends on the employee’s job duties and responsibilities, and, in some cases, salary range.
Overtime is calculated daily
In Florida, overtime is based on a weekly count of hours, not a daily count. Any hours worked over 40 hours a week are considered overtime for non-exempt employees.
Compensatory time off can be used instead of overtime pay
Employers may not offer compensatory time off or “comp time” as an alternative to overtime pay. According to FLSA, overtime must be paid at one and a half times the regular hourly rate for any hours worked over 40 in a workweek.
Exemptions for certain industries
Some industries, such as retail or hospitality, may have different overtime rules or lower overtime thresholds. However, these industries are still subject to federal and state laws, unless these laws include specific carve-outs.
Pitfalls for Businesses
Miscalculating Overtime
Employers may occasionally miscalculate overtime by using the wrong timeframe or method. For example, some employers may try to divide an employee’s total hours worked over a two-week period instead of using the standard single workweek for calculating overtime.
Not Paying Overtime
Some employees may be unaware of their rights to overtime. However, even if an employee is entitled to overtime and makes an agreement with their employer that it isn’t required, their employer may still be held liable for unpaid overtime. Noncompliance can also incur double damages and attorney’s fees.
Incorrectly Classifying Employees as Exempt
Employers may incorrectly classify employees as exempt, which could result in violations and penalties. Exemption status depends on an employee’s job duties and responsibilities, not their salary or based on any internal classification schema.
Best Practices for Compliance
Non-compliance with overtime laws in Florida often comes with penalties. These penalties range from fines and lawsuits to jail time. The severity of each penalty typically depends on the violation at issue.
To ensure compliance with overtime laws in Florida, employers should follow these practical tips:
Understand The Law
Familiarize yourself with federal and state overtime laws and any industry-specific regulations that may apply. Being armed with knowledge and the tenets that guide work relationships in Florida is a great way to remain compliant with labor laws.
Classify Employees Correctly
Employers should ensure employees are properly classified as exempt or non-exempt, and should regularly review and/or update employee classifications as needed based on changes in job duties or responsibilities.
Pay overtime as required
Comply with requirements to pay overtime at a rate of at least one and a half times the regular hourly rate for any hours worked over 40 in a workweek.
Provide training
Offer regular training sessions on overtime laws and regulations to ensure employees understand their rights and responsibilities.
Review and Update Policies
Regularly review and update company policies to ensure they align with the latest overtime laws and regulations.
Monitor compliance
Conduct internal audits and implement control testing to ensure compliance with overtime laws and regulations.
Track Employee Hours Efficiently
Many employers utilize obsolete or ineffective employee-tracking tools like manual logbooks or rosters. These methods are inefficient and can result in widespread data-entry errors such as misreported overtime, missing hours, inaccurate payrolls, as well as other recordkeeping challenges.
Efficient systems for tracking employee hours and overtime accurately and automatically can be tremendously beneficial, saving employers hours of administrative busywork each week and helping reduce payroll waste by thousands of dollars per worker per year.
Smart solutions like Workyard’s GPS time clock help construction and field service businesses track employee work time with minute-by-minute accuracy. Paired with Workyard’s intuitive scheduling tools and job tracking features, the app gives businesses the power and precision needed to precisely keep track of employee work hours, ensuring compliance with Florida overtime laws, as well as with labor and overtime laws anywhere else in the United States.
Check out how Workyard’s compliance tools can keep your business on the up-and-up while helping you save real money on payroll each week, or sign up for a 14-day free trial now to see what Workyard can do for yourself.
Advice for Employees
To protect their rights, employees should:
Understand Your Classification
Employees should learn if they’re exempt or non-exempt and what that means regarding their overtime pay.
Effectively Track Work Hours
Employees should keep an accurate record of their work hours to protect their rights, as overtime is calculated based on a weekly count of hours worked.
Communicate With Your Employer
If employees believe they are entitled to overtime pay, it is important to discuss the issues with their employer and seek clarification on their eligibility and pay rate.
Seek Legal Advice
If an employer fails to pay overtime or violates other employment laws, consult an attorney to discuss potential legal options and remedies.
Final Thoughts on Overtime Laws in Florida
Navigating Florida’s overtime landscape involves understanding key regulations, statutes, and essential calculation methods. Being aware of the regulations that guide every aspect of overtime, from wage rates to exemptions and eligibility, not only ensures every employee’s rights are respected but also helps employers avoid penalties due to noncompliance.
Consider consulting an employment law expert for personalized advice or to stay informed about your rights and obligations.
For many businesses, the only real solution to overtime compliance challenges is great software. The right business management software tends to come with built-in compliance and recordkeeping rules, regardless of your industry, how many employees you have, what they do, or how widely they’re dispersed across the state (or country).
If you operate a construction or field services company, we humbly suggest trying Workyard for your compliance needs.
At Workyard, we understand the complexities businesses face in navigating labor laws and ensuring compliance. That’s why we offer tailored solutions to help manage your workforce efficiently and compliantly. From accurate time tracking to streamlined payroll processing, Workyard equips you with the tools you need to adhere to labor laws effortlessly.
Workyard is built around the industry’s most accurate GPS tracking and geofencing technology, which ensures payroll accuracy across your workforce, no matter which job site you send them to or when you need them to work there. Workyard’s timesheet tracking system also comes with built-in federal and state overtime rules, as well as adjustable break rules you can customize at the employee level.
Workyard’s intuitive scheduling dashboard makes it easy to direct your workforce to the jobs you need to do based on their skill sets, locations, availability, and (of course) their weekly time worked – so you can avoid unnecessary overtime payments and reduce reimbursable travel expenses.
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