How do you calculate overtime pay in Florida?

May 28th 2024

Florida, known for its sunny beaches and vibrant culture, also maintains specific regulations – closely aligned with federal standards set by the Fair Labor Standards Act (FLSA) – to ensure that employees working long hours are fairly compensated. This article aims to explain the process of calculating overtime in Florida, offering a comprehensive guide to navigate these regulations effectively.

This Article Covers

Understanding Overtime Pay in Florida
Overtime Pay for Hourly, Salaried, and Tipped Employees in Florida
Overtime for Complex Pay Structures in Florida
Additional Considerations for Florida Overtime

Understanding Overtime Pay in Florida

Which Overtime Laws Apply in Florida?

Florida follows the Fair Labor Standards Act (FLSA) for determining overtime eligibility and calculations. The FLSA is a federal law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The state does not have its specific overtime laws, making the FLSA the primary guide for employers and employees. 

How Much is Overtime Pay in Florida?

In line with FLSA guidelines, Florida mandates that eligible employees receive overtime pay at a rate of 1.5 times their regular pay for hours worked beyond 40 in a workweek. There are no provisions for daily overtime, unlike some states such as California.

If you want to learn more, check out our guide on Florida overtime laws.

What is the Overtime Minimum Wage in Florida?

The federal minimum wage, as established by the FLSA, is currently $7.25 per hour. However, Florida has set a higher minimum wage at $12.00 per hour, with a provision for future increases, distinguishing it from the static federal rate. Notably, the Florida minimum wage is set to increase by $1.00 every September 30th, reaching $15.00 by September 30, 2026. See minimum wage laws in the States for more details.

Employees are entitled to the highest minimum wage applicable to them, whether it’s set by federal, state, or local laws. In Florida, given the state’s current minimum wage of $12.00 per hour, the overtime rate in Florida is $18 per hour. This means that employees earning the minimum wage or more are entitled to a minimum of 1.5 times their regular hourly rate for any overtime hours worked.

However, not all employers are mandated to pay the federal minimum wage. Under the FLSA, a business must either generate $500,000 or more in annual sales or have employees who work in ‘interstate commerce’ to be required to pay the minimum wage. There are also specific exemptions to the federal minimum wage requirement, including:

  • Independent contractors
  • Outside salespeople
  • Small farm employees
  • Switchboard operators for certain small companies
  • Seasonal amusement or recreational business employees
  • Small local newspaper employees or newspaper deliverers
  • Students, and apprentices under certain conditions

Who is Eligible for Overtime Pay in Florida?

In Florida, overtime eligibility primarily distinguishes between exempt and non-exempt employees, governed by the FLSA. Non-exempt employees, typically hourly workers engaged in manual or customer service roles, are entitled to overtime pay. These employees usually need to:

  • Earn less than $684 weekly or $35,568 annually.
  • Work under supervision, performing repetitive or physical tasks.

Conversely, salaried professionals, executives, and various professionals often do not qualify for overtime due to their job nature and compensation levels. Independent contractors are also ineligible for overtime as they are not considered employees. Tipped employees, although generally qualifying for overtime, may not always reach the 40-hour weekly threshold required for overtime eligibility due to flexible working hours.

Check out our guide on overtime rights in Florida.

Who is Exempt from Overtime in Florida?

The FLSA identifies several exemptions from its overtime standards. The main exemptions include certain salaried employees earning at least $684 per week, such as executives, administrators, professionals, and external salespeople. This also extends to certain computer-related roles, independent contractors, some transportation and agricultural workers, and live-in employees like housekeepers.

  • Executive Exemption: This applies if your primary role is managing at least two employees, with a majority of your work time dedicated to managerial tasks. The position must be salaried.
  • Administrative Exemption: If your job involves non-manual, business operation-related work requiring discretion and independent judgment, and is salaried, this exemption may apply.
  • Professional Exemption: Covers jobs requiring advanced knowledge or education, such as artists, teachers, and computer professionals, where the role is salaried and primarily intellectual.
  • Outside Sales Exemption: For those whose main duties are sales or orders outside the employer’s premises, paid by salary or commission, with limited non-sales activities.

If your job fits any of these exemptions, you are not entitled to overtime pay under federal or Florida law.

Can Employers in Florida Require Mandatory Overtime?

Yes, employers in Florida can require employees to work overtime. However, employees must be compensated appropriately for the extra hours. The FLSA does not limit the number of overtime hours an employer can request as long as employees are paid for it.

Overtime Pay for Hourly, Salaried, and Tipped Employees in Florida

How do you Calculate Overtime Pay for Hourly Employees in Florida?

To calculate overtime for hourly employees, multiply the employee’s regular hourly rate by 1.5 for each hour worked beyond 40 in a workweek.

Example: An hourly worker earning $15 per hour works 42 hours in one week. Their overtime calculation for 2 hours would be 2 x $15 x 1.5 = $45 in overtime pay.

To learn more, you can read our guide on your rights as an hourly employee in Florida.

How is Overtime Pay Calculated for Salaried Employees in Florida?

In Florida, determining overtime pay for salaried employees involves a few steps to convert their salary into an hourly rate, based on a standard 40-hour workweek:

  • Step 1: Determine Weekly Salary: First, identify the employee’s weekly salary, which is the fixed weekly payment regardless of the number of hours worked.
  • Step 2: Calculate the Hourly Rate: Divide the weekly salary by the number of hours the salary is intended to cover, typically 40 hours, to find the regular hourly rate.
  • Step 3: Compute Overtime Pay: For any hours worked over 40 in a workweek, multiply the excess hours by 1.5 times the regular hourly rate to calculate overtime pay.

Consider a salaried employee in Florida who earns a weekly salary of $800. To calculate their overtime:

  • Weekly Salary: $800
  • Regular Hourly Rate: $800 divided by 40 hours = $20 per hour
  • Overtime Calculation: If the employee works 45 hours in a week, the five hours over the standard forty hours are eligible for overtime: 5 hours x $20 x 1.5 = $150

Therefore, for a 45-hour workweek, the employee’s overtime compensation would be $150, in addition to their standard weekly salary of $800, making the total compensation $950 for that week.

For more details, check out our guides on salaried employees laws and your rights as a salaried employee in Florida.

How do you Calculate Overtime Pay for Tipped Employees in Florida?

Servers and other tipped employees in Florida are eligible for overtime pay, though the calculation method for their overtime differs from that of non-tipped employees.

For tipped employees, the calculation requires additional steps due to the variable nature of their total pay. The process begins with the understanding of Florida’s minimum wage and the “tip credit” provision. Currently, the standard minimum wage in Florida is set at $12.00 per hour, with a tipped minimum wage of $8.98 per hour. Florida employers can apply a tip credit of up to $3.02 per hour, which is deducted from the standard minimum wage on the assumption that the employee will earn this amount back in tips. 

The minimum wage in Florida for both non-tipped and tipped employees is set to rise annually by $1.00 each September 30th. This incremental increase will continue until the minimum wage reaches $15.00 for non-tipped employees and $11.98 for tipped employees by September 30, 2026. See the Department of Labor minimum wages for tipped employees for the latest information.

To calculate overtime pay for tipped employees in Florida:

  • Begin with the Standard Minimum Wage: Use Florida’s standard minimum wage, currently $12.00 per hour.
  • Calculate the Overtime Base Rate: Multiply the standard minimum wage by 1.5 to find the base rate for overtime, which equals $18.00 per hour.
  • Apply the Tip Credit: Subtract the tip credit, which is $3.02, from the overtime base rate. The tip credit is the amount employers can use towards their minimum wage obligation based on the tips an employee earns.
  • Find the Tipped Employee Overtime Rate: After deducting the tip credit, the overtime rate for tipped employees is calculated to be $14.98 per hour for any hours worked over 40 in a workweek.

It is important to note that the overtime compensation amount will change if the tipped employee’s normal hourly wage exceeds the Florida state minimum. For the most current and detailed information on wage calculations and overtime for tipped employees, consulting official resources like the Florida Department of Economic Opportunity or the U.S. Department of Labor’s Wage and Hour Division is recommended.

Overtime for Complex Pay Structures in Florida

How do you Calculate Overtime Pay for Piece Rate Employees in Florida?

The first step in calculating overtime for employees paid on a piece rate basis is to figure out the “regular rate” of pay. This is done by dividing the total earnings for the week by the total hours worked within that week. For any hours worked beyond 40, the employee is entitled to an additional half of this regular rate for each overtime hour, on top of their complete piecework earnings.

Consider a piece-rate employee who works 50 hours a week and finishes 50 pieces, with a rate of $10 per piece, totaling $500 in earnings. The regular rate for that week is calculated as $500 divided by 50 hours, resulting in $10.00 per hour. For the overtime hours, the employee earns an extra $5.00 (half of the regular rate) for each of the 10 hours over 40, adding up to an additional $50.00. Therefore, the total earnings for the week amount to $550.

Alternatively, piecework employees can be compensated for overtime by receiving one and a half times the piece rate for pieces completed during overtime hours, provided this arrangement is agreed upon in advance. This piece rate must be the same as that paid for non-overtime hours and must ensure that the employee earns at least the minimum wage for every hour worked.

How do you Calculate Overtime Pay for Commission Employees in Florida?

While commissions are prevalent in industries like retail, sales, and finance, they’re often paid as incentives for exceeding sales targets or meeting specific goals. Commissioned employees can be paid purely on commissions or receive a mix of hourly wages and commissions. However, to be exempt from receiving overtime, commissioned employees must:

  • Work for a retail or service establishment.
  • Earn a regular rate of pay exceeding 1.5 times the federal minimum wage for every hour worked in a workweek when overtime is worked.
  • Receive more than half of their total earnings from commissions over a representative period, not exceeding one year.

Consider a commissioned employee earning a weekly commission of $1800 for a 50-hour workweek. Dividing $1800 by 50 gives an hourly rate of $36, well above the required 1.5 times the federal minimum wage of $10.88. Thus, this employee would be exempt from overtime pay.

For employees earning both regular wages and commissions, the calculation becomes slightly more complex. Combine the total earnings from wages and commissions for the week, then divide by the total hours worked to find the regular rate of pay.

For example, an employee earns $15/hour plus a $100 weekly commission over 50 hours, totaling $850 ($750 from hourly pay and $100 commission). Dividing $850 by 50 hours results in a $17/hour rate. If the employee’s compensation from commissions does not exceed half of their total earnings, they would not be exempt, and overtime pay is required for hours worked beyond 40.

Additional Considerations for Florida Overtime

What is the Statute of Limitations for Claiming Unpaid Overtime in Florida?

The statute of limitations refers to the legally prescribed time limit within which a claim must be filed. For unpaid overtime, the Fair Labor Standards Act (FLSA) sets this time limit at two years, extending to three years for deliberate violations. Minimum wage violation claims benefit from a longer statute of limitations of four years, providing employees with a significant window to seek legal recourse.

What are the Recordkeeping Requirements for Overtime Wage Compliance in Florida?

In Florida, there aren’t specific state laws that mandate recordkeeping practices for employers regarding employee wages and hours. Instead, employers must adhere to federal regulations, notably those set forth by the FLSA, which outlines comprehensive requirements for maintaining employee records. According to the FLSA, employers are required to keep records that include:

  • Employee’s name and social security number.
  • Residential address.
  • Date of birth, along with the employee’s sex and occupation.
  • The starting time and date of the employee’s workweek.
  • Hours worked each day and total hours worked each week.
  • The basis on which the employee’s wages are paid.
  • Regular hourly pay rate.
  • Total daily or weekly earnings, with overtime earnings noted separately.
  • Any additions to or deductions from the employee’s wages.
  • Total wages paid each pay period.
  • Dates of payments and the pay periods they cover.

For compliance, payroll records should be retained for  3 years. Records that detail the computation of wages, such as timesheets and work schedules, are required to be kept for at least 2 years.

To ensure compliance and streamline these processes, employers can consider leveraging technology solutions like time and attendance software. One such tool, Jibble offers a way to accurately track work hours, store essential employee information securely, and integrate with payroll systems, simplifying adherence to FLSA requirements.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.