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On January 1, 2014, the minimum wage for employees working in Florida rose to $7.93 per hour. This hourly increase of $0.14 per hour is tied to the rate of inflation over the prior year.
What is the effect on “tipped employees?”
As of January 1, 2014, “tipped employees” in Florida who otherwise meet eligibility requirements for the tip credit under the federal Fair Labor Standards Act (FLSA) must be paid a direct cash wage of at least $4.91 per hour. This is an amount equal to of $7.93 per hour (the new Florida minimum wage), minus the $3.02 hourly tip credit permitted under Florida law (assuming that these employees receive enough in tips to generate this credit). [$7.93 - $3.02 = $4.91].
What is the effect on FLSA’s “Section 7(i) overtime exception?
Employees being paid using the FLSA’s “Section 7(i)” overtime exception for commission-paid employees of retail or service establishments should note that the FLSA applies the exception with reference to the federal minimum-wage rate rather than state rate. Therefore, an employee’s average or “regular” rate in an overtime workweek is more than 1.5 times the federal minimum wage. Since the federal minimum wage remains the same, an employee paid under this exemption must continue to earn more than $10.88 per hour in overtime weeks.
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