Florida has a thriving economy that’s driven by a diverse range of industries including agriculture, tourism, manufacturing and international trade. Some of these industries rely heavily on overtime to keep things ticking over during busy periods. Others rely less on employees working extra hours, as is the case with most office-based jobs. However, most employers will encounter overtime pay at some point or another, so it’s essential that you keep up with the requirements of the Florida overtime wage law if you run a business in The Sunshine State.
Today’s guide for employers has got your back. We are going to share everything you need to know about the Florida overtime wage law so that you can stay compliant, avoid costly fines and penalties, keep your business operations running smoothly, and build a happy and productive workforce.
- What Is Overtime And Is It Regulated?
- Florida Overtime Wage Law
- Who is Covered By The Florida Overtime Law?
- How To Calculate Overtime Pay in Florida
- Example of Overtime Calculations
- Florida Overtime Wage Law: Employer Obligations
- Factorial: Streamline Florida Overtime Wage Law Compliance
- An attendance tracking software for every industry ✅
What Is Overtime And Is It Regulated?
Overtime refers to any extra hours that an employee works outside of their regular, scheduled workweek. Because this extra time is not included in their normal working hours, non-exempt employees are entitled to receive additional compensation for this work.
Overtime isn’t just about staying late occasionally; it’s a structured part of many jobs as many industries rely on it to maintain production levels during peak seasons and fill gaps caused by staffing shortages or surges in commercial demands. This includes construction, IT, healthcare and retail. Overtime is also sometimes common in office settings when there are specific project demands, tight deadlines, or staffing challenges.
So, how is overtime regulated in the U.S.? Essentially, there are two levels of regulation: federal and state.
In terms of federal guidelines, employers must meet the requirements of the Fair Labor Standards Act (FLSA), which establishes overtime pay, minimum wage and child labor standards for full and part-time workers in the private sector and in federal, state and local governments.
Specifically, the FLSA offers certain key protections for covered employees in terms of overtime:
- Overtime threshold. Unless exempt (see below), employees working more than 40 hours in a workweek are entitled to overtime pay.
- Federal overtime rate. Overtime pay must be at least 1.5 times the employee’s regular rate of pay.
- Overtime rate calculations. The FLSA considers various forms of compensation when calculating the “regular rate” for overtime. This includes salary, bonuses, commissions, and certain non-cash benefits.
Some jurisdictions also have their own state overtime laws, too. This means that it’s important to check the requirements in your state before defining your overtime policy. More on this in the section below on the Florida overtime wage law.
Is Mandatory Overtime Legal?
Ok, next question: can employers force their employees to work overtime?
This is a bit of a gray area. The FSLA does not enforce mandatory overtime. It also does not place a maximum limit on the number of hours employers can require their employees to work. However, some states have regulations or restrictions in place. For example, California places limitations on mandatory overtime for employees who have clocked 72 hours or more in the previous week.
In addition, there are certain exceptions where overtime cannot be enforced.
This includes:
- If you are a non-interstate commerce company.
- If employees are exempt from the FSLA.
- If any of your employees come under the Rehabilitation Act or the Americans with Disabilities Act (ADA). In this case, you must make reasonable accommodations for a disability by modifying an employee’s scheduled overtime.
Nonetheless, provided your employees don’t meet any of the above exemptions, then, generally speaking, you can ask them to work overtime without any prior notice. However, you can’t ask them to work off the clock as this would violate the Fair Labor Standards Act (FLSA).
Finally, despite all the above, employers in the U.S. also need to be mindful of additional wage and hours laws as well as any collective bargaining agreements that might apply before implementing a mandatory overtime policy. For instance, these legal frameworks often define the maximum number of hours an employee can work in a day or week. They also specify overtime compensation rates and outline the conditions under which mandatory overtime can be enforced. This includes the rules for managing overtime for exempt employees.
Florida Overtime Wage Law
Aside from federal regulations, there are a number of labor laws in Florida that employers need to comply with.
These include:
- Anti-discrimination laws
- Workplace harassment laws
- Workers’ compensation laws
- Unemployment compensation laws
- Florida employee tax laws
- The Florida WARN Act
- The Family and Medical Leave Act Florida (FMLA)
- The Florida minimum wage
- Laws regulating Florida state holidays
- Florida laws on firing employees
In terms of overtime, Florida doesn’t have its own overtime wage law. Instead, the state enforces the Fair Labor Standards Act (FLSA) for most overtime regulations. There are a few minor distinctions, though. For one thing, while the FLSA focuses on a 40-hour workweek threshold, some manual laborers in Florida are entitled to overtime for exceeding 10 hours in a single workday. However, this isn’t a definitive state law. Instead, it’s regulated by industry guidelines. To the same effect, construction workers might be subject to union agreements or contracts that stipulate different overtime pay rates or conditions.
For the purpose of today’s article, we will focus on the FSLA and how it impacts exempt and non-exempt employees in the state.
Let’s start by looking at which employees specifically are covered by the Florida overtime wage law.
Who is Covered By The Florida Overtime Law?
As we just mentioned in the previous section, overtime laws are governed by the federal Fair Labor Standards Act (FLSA) as the state does not have separate overtime regulations. But who is covered by this Act? Which types of employees are protected by this federal overtime law?
Actually, it’s most employees, although there are exemptions in terms of eligibility and special cases where requirements don’t apply.
Here’s an outline of who is covered by the Florida overtime wage law:
- General application. The FLSA’s overtime rules apply nationwide, including all cities in Florida. This means that employees in Tampa, Tallahassee, Orlando, and Miami are covered under the same federal overtime provisions.
- Non-exempt employees. Typically, most hourly workers are entitled to overtime pay. Salaried employees who do not meet the exemption criteria are also entitled to overtime pay (we’ll expand on criteria below).
- Exempt employees. Certain categories of employees are exempt from overtime pay, as we will see in the next section on eligibility.
Workers who believe that they are entitled to overtime pay but their employer refuses to provide it can file a complaint with the U.S. Department of Labor’s Wage and Hour Division.
Eligibility Criteria for Employees
So, we’ve discussed how an employee’s right to overtime pay largely depends on whether they are classified as exempt or non-exempt under the FSLA. But what does this mean? How can you determine if the law requires you to pay your employees overtime for any extra hours worked?
According to the FSLA and the Florida laws for salaried employees, eligibility primarily depends on an employee’s salary and duties.
To be eligible for overtime pay under the FSLA in Florida, employees must meet the following criteria:
- Non-exempt status. The employee must be classified as non-exempt under the FLSA.
- Salary threshold. For most non-exempt employees, they must be paid on an hourly basis or have a salary below a certain threshold to qualify for overtime.
- Hours worked. Eligible employees must have worked more than 40 hours within a given workweek to qualify for overtime.
If your employees meet all the above criteria then you must offer them overtime pay (more on the standard overtime rate below).
Exemptions and Special Cases
Ok, so far so good, but which employees are classified as exempt from the FSLA and not entitled to overtime pay?
Put simply, if an employee meets any of the following Florida overtime wage law exemptions, then they are classed as exempt. This means that you do not have to offer overtime pay for any hours worked over the employee’s regular scheduled workweek.
Exemption depends on:
- Salary basis. The employee is paid a salary as opposed to being paid on an hourly basis.
- Salary level. The employee earns at least $684 per week or $35,568 annually. These salary requirements do not apply to teachers and employees practicing law or medicine.
- Duties. An employee can also be exempt because of the nature of their work. This is most often the case with employees working in executive, professional, administrative, external sales, or computer-related positions.
What about special cases? Are there any employees who might meet the above criteria but still be entitled to overtime pay?
Essentially, yes, there are. Some employees are not exempt even if they meet the above requirements.
This includes:
- Blue-collar workers. Generally speaking, the above exemptions only apply to white-collar workers. Blue-collar workers who work with their hands, such as carpenters, mechanics, plumbers, etc., are not exempt no matter how highly paid they are. In short, these workers will always receive overtime pay.
- Police, firefighters & first responders. First responders such as police officers, correctional officers, firefighters, and paramedics are not exempt no matter how high their salaries.
Ultimately, it is your responsibility as an employer to demonstrate whether or not your employees are eligible.
How To Calculate Overtime Pay in Florida
Under the Florida overtime wage law (FLSA), you must pay all eligible employees overtime pay at the standard rate of 1.5 times their regular hourly wage (time and a half) for any hours they work over the standard 40-hour working week.
The time and a half formula:
(standard hourly rate) × 1.5 = overtime rate
This equation gives you the hourly time-and-a-half rate for non-exempt employees. You then need to multiply this rate by the number of overtime hours the employee worked.
Overtime pay is subject to the same payroll tax and deductions as regular hourly wages. This includes employer payroll taxes such as FUTA and one-half of Medicare and Social Security on the full amount of an employee’s paycheck.
Calculating time and a half for salaried employees
For non-exempt salaried employees who work fixed hours, first, you need to establish what their hourly rate would be. You can do this by dividing their weekly salary by the number of hours they typically work.
Once you have this figure, you can calculate overtime pay for non-exempt salaried employees using the time-and-a-half formula above.
Example of Overtime Calculations
Let’s take a look at an example to help you understand how the Florida overtime wage law payroll calculation process works in practice.
Identify Regular Hourly Rate
Let’s say, for example, that an employee’s regular hourly wage, as defined by their employment contract, is $20 per hour. This figure is the base of their overtime rate calculation.
Determine Overtime Rate
For most non-exempt employees, the overtime rate is 1.5 times their regular hourly wage. So, following on from the example in the previous point, the overtime rate would be:
$20 per hour (regular hourly wage) x 1.5 (overtime rate) = an overtime rate of $30 per hour for all extra hours worked
Calculate Total Overtime Hours
Ok, let’s imagine that an employee has worked 10 hours of overtime this week. Their total overtime hours would therefore be 10.
Calculate Total Overtime Pay
Now you simply need to calculate your total overtime pay for the week by multiplying the total overtime hours by the overtime rate.
Here’s the formula:
Total overtime earnings = 10 hours (overtime hours) × $30 per hour (overtime rate) = $300
Identify Regular Monthly Pay
If an employee regularly works a set number of overtime hours, then the process for calculating their regular monthly pay including overtime is very simple.
Let’s say they work 10 hours a week, for 4 weeks in every month. That gives them a total of 40 hours of overtime per month. The overtime pay calculation would therefore be:
40 hours (overtime per month) × $20 (hourly overtime rate at 1.5) = $800 overtime pay each month
However, this formula won’t work if the employee works sporadic overtime hours as their monthly overtime pay will depend on how many hours they work each month.
Calculate Total Monthly Earnings Including Overtime
Now to the final step: calculating an employee’s total monthly earnings including overtime pay.
Assuming they work 40 hours per week, you will use this formula:
$1600 (regular pay, calculated as 40 scheduled hours per week at regular rate of pay) + $800 (monthly overtime pay) = $2400 pay per month including overtime
Again, this formula won’t work if the employee works sporadic overtime hours as your monthly overtime pay will depend on how many hours they work each month.
Florida Overtime Wage Law: Employer Obligations
The Florida Department of Labor is responsible for regulating the Florida overtime wage law and ensuring that businesses in the state that hire non-exempt employees are meeting all their employer obligations.
Let’s take a look at these obligations so that you understand what you need to include in your employee handbook in order to comply with overtime guidelines.
Classify Your Employees Correctly
Firstly, employers must correctly classify all employees as either exempt or non-exempt. In other words, whether employees meet the eligibility criteria established by the Fair Labor Standards Act (FLSA). This classification is crucial because it determines eligibility for overtime pay.
What’s more, misclassifying employees can lead to legal trouble for employers. For instance, if a non-exempt employee is wrongly classified as exempt and denied the overtime pay that they’re entitled to, the employer may be responsible for:
- Back wages. The employer may owe back pay for all the overtime hours the employee worked without proper compensation.
- Liquidated damages. In some cases, the employer may also have to pay an additional amount equal to the back pay owed, as a penalty for the violation.
- Attorney’s fees. The employer may have to pay the employee’s attorneys’ fees associated with the case.
It’s a good idea to regularly review all roles and duties within your business to make sure that you are correctly classifying all your employees. In particular, pay attention to each employee’s primary job duties and responsibilities to see if they meet the exemption criteria outlined by the FLSA.
Calculate and Pay Correct Overtime Pay
Secondly, in the event that you hire non-exempt employees, you must calculate and pay the correct amount of overtime pay to each eligible employee at the end of each pay period. Accurate employee time tracking plays a fundamental role in fulfilling this obligation.
The best way to track how many overtime hours each employee works is by using an electronic time clock. This will help you monitor the exact time an employee starts and finishes work, when they take their breaks, and how much overtime pay you owe them.
It’s also important to have a reliable payroll system in place
Maintain Accurate Overtime Records
Thirdly, according to the FSLA, you must maintain accurate overtime records for all non-exempt employees. This includes maintaining certain employee wage and hour records, including those necessary for calculating overtime pay.
Specifically, you need to keep a record of:
- Full name and identifying information
- Hourly rate of pay
- Daily and total hours worked each week
- Total straight-time earnings
- Overtime pay earned
- Dates of pay periods
- Deductions made from wages
Accurate time records can help prevent disputes between employees and employers about wages due. In case of a dispute, well-maintained timekeeping records provide clear evidence that can resolve these issues quickly and fairly. Plus, good timekeeping practices allow employers to manage labor costs effectively, plan staffing needs, and improve overall operational efficiency.
Protect Employees From Retaliation
Finally, the FLSA protects employees against retaliation for asserting rights related to wage and hour laws. This includes overtime. In other words, you cannot retaliate against an employee in the event that they raise a dispute relating to overtime pay with state or federal authorities.
So, what do we mean by retaliation?
Essentially, retaliation occurs when an employer takes adverse action against an employee because the employee engaged in a protected activity. Protected activities include filing a wage claim, complaining about illegal conduct, participating in an investigation, or any other form of legally protected opposition to employer practices. Retaliation might be in the form of firing an employee, holding them back from promotion, or restricting opportunities for professional growth and development.
Factorial: Streamline Florida Overtime Wage Law Compliance
Factorial’s all-in-one HR software includes a number of unique features that can help your business comply with the Florida overtime wage law.
For instance, Factorial’s time and attendance tracking feature helps you accurately record and monitor employee work hours in real time. You can easily track overtime hours, identify excessive overtime patterns and proactively manage workload distribution. Plus, you can integrate all this data with Factorial’s payroll software. That way, you can easily calculate overtime hours and rates according to predefined rules.
In addition, you can use Factorial’s scheduling software to manage overtime and flextime arrangements. For instance, you can use shift planning tools to create and assign shifts based on workload requirements and employee availability. Employees can also request time off or schedule changes through the self-service employee portal. This streamlines the process and reduces your administrative burden.
Not only that, but Factorial’s HR reporting software can provide you with valuable insights into employee overtime. This includes overtime trends, employee availability, and scheduling efficiency. This data-driven approach enables you to allocate workloads in line with staffing levels. You can also make adjustments when needed to prevent excessive overtime.
Ultimately, all these features help you stay compliant with the Florida overtime wage law so that you can re-focus your efforts on building a happy and productive workforce.
