Florida Minimum Wage Increase

October 16, 2006

The Agency for Workforce Innovation (“AWI”) and the Department of Revenue have posted the new minimum wage rate for 2007. Effective January 1, 2007, Florida’s minimum wage is $6.67 per hour for all hours worked in Florida. Florida’s minimum wage was created by way of a constitutional amendment approved by voters on November 2, 2004 and applies to all employees in the state who are covered by the federal minimum wage under the Fair Labor Standards Act (“FLSA”) and its implementing regulations.

The amendment requires the AWI to perform a calculation each year to establish a new minimum wage. The amendment also requires that the new minimum wage rate be published. According to the AWI, the current minimum wage represents a 4.2% change in the federal consumer price index for urban wage earners and clerical workers in the South Region for the 12-month period prior to September 1, 2006, and is $1.52 more per hour than the current $5.15 per hour federal minimum wage.

Florida employers must pay their employees a wage not less than the amount of the state minimum wage for all hours worked in Florida. The definitions of “employer”, “employee” and “wage” for state purposes are the same as those established under the FLSA and its implementing regulations.

For “tipped employees” who meet the eligibility requirements for the tip credit under the FLSA, Florida employers may count tips that are actually received as wages under the FLSA, but the employer must pay the “tipped employees” a direct wage in an amount equal to the minimum wage of $6.67 minus $3.02 (which, as required by the amendment, is the 2003 tip credit existing under the FLSA), or a direct hourly wage of $3.65 as of January 1, 2007.

The amendment authorizes employees to bring a civil action in a court of competent jurisdiction against their employer or any person violating Florida’s minimum wage law. An employee who prevails may recover unpaid wages, an equal amount in liquidated damages and attorneys’ fees and costs. Employers or others who violate Florida’s minimum wage law are subject to a $1,000 per violation fine payable to the state. In addition, the state Attorney General may bring an enforcement action to enforce the minimum wage law.

Section 448.109 of the Florida Statutes requires employers who must pay their employees the Florida minimum wage to post a minimum wage notice in a conspicuous and accessible place in each establishment where such employees are employed. This poster requirement is in addition to the federal requirement to post a notice of the federal minimum wage. Florida’s minimum wage poster is available for downloading in English and Spanish from the AWI’s webpage at http://www.floridajobs.org/resources/fl_min_wage.html. The federal minimum wage poster can be downloaded from the U.S. Department of Labor website at: http://www.dol.gov/esa/regs/compliance/posters/flsa.htm.

For more information, please contact your Cohen & Grigsby attorney or Cohen & Grigsby’s Labor and Employment Group at 239.390.1900.

The information in this communication is for the purpose of informing and educating our clients about various aspects of the law and is not intended to be used as legal advice. If you have questions concerning any of the topics, please contact your Cohen & Grigsby attorney.

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