Two new important laws have gone into effect in the Sunshine State that you’ll want to pay attention to. These new rules effect minimum amounts of pay for employees and labor compliance for independent contractors hired in Florida.
Minimum Wage Increase
As a result of a statewide vote with majority support last November, Florida’s state constitution has been amended to increase the minimum wage over the next five years.
The current minimum wage of $8.56 per hour will rise to $10 per hour effective September 30th, 2021. The minimum wage will then increase $1 every year, until 2026, when it will reach $15 per hour.
See the official press release from the Florida Department of Economic Opportunity here.
As of October 1st, 2021, Florida state Senate Bill 1532 now requires Florida employers to report all newly hired independent contractors in the same way any new W2 employee would be reported to the Florida Department of Revenue and to the Florida Child Support Program.
It is no longer optional for businesses to report independent contractors to the state that receive in excess of $600 in exchange for rendered services.
Compliance is key here, and it is important to submit the following the next time you hire an independent contractor:
- Name and address
- Social security number
- Dates of service for which the contractor was hired
- Name, address, and employer ID number of the employer
Reporting should occur within 20 days after a contract is entered into or first payment is made, whichever is sooner.
Read the official statute here.
Employers should make certain employees are properly classified in line with Florida law to remain compliant with this new legislation.