On September 30, 2025, Florida’s minimum wage will increase to $14.00 per hour for non-tipped employees and $10.98 per hour for tipped employees.
Here are a few additional points to review so that the Company is not violating other employee time and pay rules:
Exempt vs. Non-Exempt
All employees are presumed non-exempt (i.e., typically paid an hourly wage, and those who are entitled to overtime pay for work over 40 hours per week are entitled to overtime pay). Non-exempt employees customarily perform more technical or manual type of work.
In order to be an exempt employee, you must be paid a salary, and hold one of the established exempt roles, such as executive, administrative, professional, computer professionals, outside sales, commissioned sales, highly compensated, motor carrier and others.
Non-Exempt Hourly vs. Salaried Employees
Because hourly employees are paid based on the amount of time they work, employers must ensure they accurately record all hours worked for non-exempt employees. However, non-exempt employees may be paid a salary but still must have their time worked recorded and overtime paid for all hours over 40 in a work week.
Rounding Rules
It’s best to have a written policy regarding rounding rules for computing hours worked to avoid confusion. Using timeclocks helps. However, if you’re permitting handwritten entries, ensure to periodically monitor to ensure it is being performed accurately.
Employers may round employee time to the nearest quarter hour, sometimes known as the 7-minute rule. An employee’s time may be rounded down if it falls between 1 to 7 minutes (and thus does not count as hours worked) but then employers must round up time from 8 to 14 minutes and count as a quarter hour of work time.
Recording (Paperwork) Rules
Employers are required to keep time records of each covered, non-exempt worker, including:
- Hours worked each workday;
- Total hours worked each workweek;
- Total amount paid for overtime hours;
- Total wages paid each pay period; and
- Date of payment and pay period covered by payment.
The FLSA requires employers to preserve their payroll records for at least three years. This is why it is important to ensure payroll records can be accessed during this time.
On-Call
On-Call means either: (a) an employee is required to remain on an employer’s premises and may not use the time for personal activities, or (b) an employee, who may be off premises, continues to predominantly benefit the employer, and is not able to use the time for his/her own purposes when work so requires.
However, an employee is not on call if the employee is away from the office and yet can be reached by the Company, when necessary.
Overtime Calculations
Nonexempt employees must be compensated for hours worked in excess of 40 hours in a work week. If the employee is paid on an hourly basis, the compensation must be at a rate not less than one and a half times that amount. However, if an employee is paid a fixed salary and the employee’s hours fluctuate from week to week, then the overtime is calculated by dividing the employee’s salary by the actual hours worked, or ½ the regular rate.
Meal and Rest Break Rules
Non-meal rest periods of 20 minutes or more are not required to be compensated. Meal periods must be no less than 30 minutes for it not to be paid. How the employer manages and documents such breaks is very important to avoid disagreements over compensatory time.
Misclassifying Employees
Employees may be intentionally misclassified as exempt to avoid paying overtime, but our experience has shown that more frequently misclassification is either a close question or an unintentional oversight.
For many types of exemptions (not all) to be properly classified as exempt, an employee must meet both the salary and duties tests, and that salary must be at least $684/week.
Unfortunately, the penalties for FLSA violations can include unpaid back overtime, liquidated (double) damages and interest and attorneys’ fees.
Tip Credits
Tips are permitted for employees as those engaged in an occupation in which they customarily and regularly receive more than $30 a month in tips. A tip credit allows employers to not have to pay the full minimum wage amount because the tip income makes up the difference (and often much more).`
In Florida, effective September 30, 2025, Florida’s employers must pay tipped employees a cash wage of $10.98 per hour; however, employers must also be able to show that tipped employees make at least the full minimum wage between their direct wages and tip credit amount, or the employer must make up the difference.
Wage & Hour issues are often complex and not intuitive. To assist you, please keep close the attached Wage & Hour Reference Sheet. Also, consult with an experienced employment attorney or consultant before instituting compensation plans.