Florida’s Minimum Wage To Increase On January 1, 2019
The HR Coffee Room by 1BC Consulting, Inc.
A quick reminder to all business owners, HR professionals, payroll professionals and management staff, as we are fast approaching the end of year 2018 and very important implementations are coming for the new year. The new Florida Minimum Wage will increase and will be effective as of January 1, 2019, as announced by The Department of Economic Opportunity (DEO) back on October 15, 2018. This means that employees who are not subject to tipped wages will need to receive a minimum wage of $8.46, which is a twenty-one ($0.21) cent increase over the current rate which was effective back on January 1, 2018.
Employees who receive tips will as well see an increase from the current rate of $5.23 to the new rate of $5.44, in addition to any tips received. This is also a twenty-one ($0.21) cent increase over the current rate which was effective back on January 1, 2018. Employers of “Tipped Employees” who meet eligibility requirements for the tip credit under the Fair Labor Standards Act (FLSA) may count tips received as wages under the FLSA. However, Florida employers must “still pay” tipped workers a direct wage.
Per DOL’s compliance regulations, it is required that employers who take a tip credit against their minimum wage obligation must, without exceptions provide tipped employees with the following notice:
(i) of the amount of cash wages the employer is paying the tipped employee;
(ii) of the amount being claimed by the employer as tip credit;
(iii) that the tip credit cannot exceed the amount of tips actually received;
(iv) that the employee retains all tips except where a valid tip pool exists; and
(v) that the tip credit will not apply to any tipped employees unless the employee has been informed of the foregoing provisions.
IMPORTANT NOTE: Even though the Department of Labor (DOL) regulations do not require that the “Tip Credit Notice” be in writing, it is recommended that employers provide such notice to their tipped employees in writing and maintain a signed copy of such notice as confirmation of compliance, and file it in their personnel file.
Minimum Wage History
Florida voters approved a constitutional amendment back in November 2, 2004, which created Florida’s Minimum Wage. According to The Department of Labor (DOL), minimum wage applies to all employees in the state who are covered by the federal minimum wage.
What is Minimum Wage?
This is referred to the lowest hourly rate that can be awarded to workers. Under the Fair Labor Standards Act (FLSA), the federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher minimum wage rate.
As specified by DOL, various minimum wage exceptions apply under distinct circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.
Required Employer Notice For Minimum Wage
With this upcoming change on January 1, 2019, Florida employers will need to begin making modifications to their wage scale and ensure the new wages are adjusted for those employees currently making minimum wage. This is a mandatory requirement from The Wage & Hour Division of The Department of Labor and The Fair Labor Standard Act (FLSA). A new labor poster reflecting such mandatory Minimum Wage increase will need to also be posted by employers, in an accessible area in each location where employees receive minimum wage work. This labor poster requirement is in addition to the Federal requirement of notice to post Federal Minimum wage. You may find these posters here for your convenience in English, Spanish and Creole.
Other states might also see an increase on their Minimum Wage in 2019; therefore, check your state’s compliance requirements with The Wage & Hour Division of The Department of Labor and The Fair Labor Standard Act (FLSA).
We hope this information was very helpful to you. Our goal is to provide you with useful information to assist you with labor requirements and compliance. Contact us today to further assist you. We wish you the best success!
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